Assume There Is a Decrease in the Demand for Soda

question 27

Multiple Choice

Assume there is a decrease in the demand for soda, some of which comes in aluminum cans. In the market for bauxite, the main mineral source of aluminum, the equilibrium price would _____ and the equilibrium quantity would _____.

• A) rise; fall
• B) fall; fall
• C) rise; rise
• D) fall; rise

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Definitions:

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Strikebreaking

Strikebreaking refers to actions taken to disrupt or undermine the effectiveness of a strike by workers, often involving the hiring of replacement workers.

Last-resort Measure

An action taken only after all other options or solutions have been exhausted or deemed ineffective.