1)In order to calculate equilibrium quantity and equilibrium price, it s required to equate market demand with market supply. We say the market-clearing price has been achieved, there is no tendency for the price to change.

2)A) Suppose Pepsi Cola, which includes Mt. Dew and several other sodas, purchased Coca-Cola & Coke's family of sodas to form one large mega-company. What do you believe would happen to the price of sodas in the United States?

This action would change the market from an oligopoly of two major companies to a monopoly. In theory, a monopoly can choose its level of price or output, but not both, because they are still subject to the consumer demand curve. Given the level of consumer demand, along with the fact that soda is no longer as much of a favored product as it used to be, I would tend to believe that the price would stay pretty much the same in order to keep customers.

B) What would happen to the remaining smaller supplies?

The smaller beverage sellers would be forced to fall in line with the monopolist on prices.

C) How could a monopoly impact you as a consumer?

That would depend on the elasticity of my demand for soda. If I still really wanted it, I would likely pay more over a certain range of prices. That would mean my demand was relatively inelastic (unflexible and unchanging). However, if I didn't care as much, and I was concerned about the health consequences of drinking soda, I might buy less or change to a substitute drink. that would mean my demand was relatively elastic.