A decrease in the demand for soft drinks due to changes in consumer tastes, accompanied by an increase in the supply of soft drinks as a result of reductions in input prices, will result in
A) a decrease in the equilibrium quantity of soft drinks and no change in the equilibrium price.
B) a decrease in the equilibrium price of soft drinks; the equilibrium quantity may increase or decrease.
C) an increase in the equilibrium quantity of soft drinks; the equilibrium price may increase or decrease.
D) a decrease in the equilibrium price of soft drinks and no change in the equilibrium quantity.
B
You might also like to view...
Robert Lucas argues that there are ________ returns to human capital, and these productivity increases are not completely captured by individuals as they decide how much education to purchase
As a result, the market produces ________ education and training. A) increasing; too little B) increasing; too much C) decreasing; too little D) decreasing; too much
Which of the following factors would be most likely to encourage investment and capital formation in a less-developed nation?
a. High and variable rates of inflation. b. Tariffs and quotas that restrict international trade. c. A legal system that provides for secure property rights and evenhanded enforcement of contracts. d. High marginal tax rates.