ssume that the cost of aluminum used by soft-drink companies increases. Indicate which of the following statements describing the resulting effects in the market for soft drinks distributed in aluminum cans are true (T) or false (F).

Question

ssume that the cost of aluminum used by​ soft-drink companies increases. Indicate which of the following statements describing the resulting effects in the market for soft drinks distributed in aluminum cans are true​ (T) or false​ (F).
Part 2
 a. The demand for soft drinks decreases---

GPT 3.5 · Answer

False (F)

AOL · Answer

b. The quantity of soft drinks demanded decreases

GPT 3.5 · Answer

True (T)

AOL · Answer

c. The supply of soft drinks decreases.

GPT 3.5 · Answer

False (F)

AOL · Answer

Wrong.
Factors other than the price of the good that affect the amount supplied are (1) input prices, (2) technology and productivity, (3) taxes and subsidies, (4) price expectations, and (5) the number of sellers. Whenever any of these ceteris paribus conditions changes, there is a change in the supply of the good, and the supply curve shifts to a new position.

GPT 3.5 · Answer

You are correct. I apologize for the mistake. The statement should be false (F). The increase in the cost of aluminum used by soft-drink companies would affect the input prices for the production of soft drinks in aluminum cans, which could potentially lead to a decrease in the supply of soft drinks.

ssume that the cost of aluminum used by​ soft-drink companies increases. Indicate which of the following statements describing the resulting effects in the market for soft drinks distributed in aluminum cans are true​ (T) or false​ (F).

ssume that the cost of aluminum used by soft-drink companies increases. Indicate which of the following statements describing the resulting effects in the market for soft drinks distributed in aluminum cans are true (T) or false (F).