-The Figure Above Shows Supply Curves for Soft Drinks

question 102

Multiple Choice

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the number of suppliers would be shown as a movement from point a to a point such as

• A) none of the points that are illustrated.
• B) point b.
• C) point c.
• D) point d.

---

Definitions:

Foreign Competition

The competition that domestic companies face from abroad, often referring to the goods and services offered by companies located in other countries.

Infant Industry Theory

An economic rationale for trade protectionism arguing that emerging domestic industries need protection from international competition until they become mature and competitive.

Protected

Safeguarded from harm or damage through legal, physical, or other means.

Emerging Industries

Sectors or industries that are in the early stages of development and show potential for significant growth and innovation in the future.