An Increase in the Price of Sugar (An Ingredient for Soft

question 11

Multiple Choice

An increase in the price of sugar (an ingredient for soft drinks) and an increased concern about tooth decay caused by the consumption of soft drinks will result in which of the following in the soft drink market?

• A)There will be an increase in both the equilibrium price and quantity.
• B)Equilibrium quantity will decrease, but equilibrium price may decrease, increase, or stay the same.
• C)There will be a decrease in both equilibrium price and quantity.
• D)Equilibrium quantity will increase, but equilibrium price may decrease, increase, or stay the same.

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