A Decrease in the Demand for Soft Drinks Due to Changes

question 92

Multiple Choice

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 and no change in the equilibrium quantity.
• C)a decrease in the equilibrium price of soft drinks; the equilibrium quantity may increase or decrease.
• D)an increase in the equilibrium quantity of soft drinks; the equilibrium price may increase or decrease.

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