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---
Part 2
a. The demand for soft drinks decreases---
Answers
GPT 3.5
False (F)
b. The quantity of soft drinks demanded decreases
GPT 3.5
True (T)
c. The supply of soft drinks decreases.
GPT 3.5
False (F)
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.
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.
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