The Graph Illustrates the Demand Curve for Soft Drinks

question 76

Multiple Choice

The graph illustrates the demand curve for soft drinks. After a rise in the price of a soft drink from $1.00 a can to $2.00 a can, the quantity of soft drinks demanded

• A) decreases from 1 can to 0 cans a day.
• B) remains unchanged.
• C) increases from 0 cans to 2 cans a day.
• D) decreases from 2 cans to 0 cans a day.
• E) cannot be determined from the figure because the demand curve will shift to a new curve.

---

Definitions:

Effective Price

The actual price paid by consumers after accounting for taxes, subsidies, or any other adjustments to the sticker price.

Sellers

individuals or entities that offer goods or services in exchange for payment.

Rent-Control Laws

Legislation that limits the amount landlords can charge for rent, typically aimed at making housing more affordable for tenants.

Maximum Rent

The highest price that can be charged for a property or piece of land, often regulated by law in rent-controlled areas to protect tenants from excessive rent increases.