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---

Answer 1

b. The quantity of soft drinks demanded decreases

Answer 2

c. The supply of soft drinks decreases.

Answer 3

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.

Answer 4

False (F)

Answer 5

True (T)

Answer 6

False (F)

Answer 7

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.