A decrease in the price of corn syrup (an ingredient for soft drinks) and an increased concern about tooth decay caused by the consumption of soft drinks will result in which of the following in the soft drink market? O Equilibrium quantity will decrease, but equilibrium price may decrease, increase, or stay the same. O There will be an increase in both the equilibrium price and quantity. O Equilibrium price will decrease, but equilibrium quantity may decrease, increase, or stay the same. None of these options is correct. OThere will be a decrease in both equilibrium price and quantity.
A decrease in the price of corn syrup (an ingredient for soft drinks) and an increased concern about tooth decay caused by the consumption of soft drinks will result in which of the following in the soft drink market? O Equilibrium quantity will decrease, but equilibrium price may decrease, increase, or stay the same. O There will be an increase in both the equilibrium price and quantity. O Equilibrium price will decrease, but equilibrium quantity may decrease, increase, or stay the same. None of these options is correct. OThere will be a decrease in both equilibrium price and quantity.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:**Question:**
A decrease in the price of corn syrup (an ingredient for soft drinks) and an increased concern about tooth decay caused by the consumption of soft drinks will result in which of the following in the soft drink market?
- ○ Equilibrium quantity will decrease, but equilibrium price may decrease, increase, or stay the same.
- ○ There will be an increase in both the equilibrium price and quantity.
- ○ Equilibrium price will decrease, but equilibrium quantity may decrease, increase, or stay the same.
- ○ None of these options is correct.
- ○ There will be a decrease in both equilibrium price and quantity.
Expert Solution
Step 1
A decrease in the price of input increases supply which shifts the supply to the right which increases the quantity and decreases price in the market.
So the decrease in the price of corn syrup increases the supply of soft drink and increases quantity and decreases price.
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