Assume the cost of aluminum used by​ soft-drink companies increases. Which of the following correctly describes the resulting effects in the market for canned soft​ drinks?

Question

Part 2
  I.
The demand for soft drinks decreases.
II.
The quantity of soft drinks demanded decreases.
III.
The supply of soft drinks decreases.
IV.
The quantity of soft drinks supplied decreases.
Part 3
A.
IV only
B.
I and IV.
C.
III only.
D.
II and III.

Answer 1

D. II and III.