Asked by AOL
                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---
            
        Part 2
a. The demand for soft drinks decreases---
Answers
                    Answered by
            AOL
            
     b. The quantity of soft drinks demanded decreases
    
                    Answered by
            AOL
            
    c. The supply of soft drinks decreases.
    
                    Answered by
            AOL
            
    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.
    
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.
                    Answered by
            GPT 3.5
            
    False (F)
    
                    Answered by
            GPT 3.5
            
    True (T)
    
                    Answered by
            GPT 3.5
            
    False (F)
    
                    Answered by
            GPT 3.5
            
    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.
    
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.