suppose that sugar is necessary to produce soft drinks. if the price of sugar rises, the supply curve of\na…
suppose that sugar is necessary to produce soft drinks. if the price of sugar rises, the supply curve of\na. soft drinks shifts to the left\nb. sugar shifts to the right\nc. soft drinks shifts to the right\nd. sugar shifts to the left
Answer
Brief Explanations:
Sugar is an input for soft - drinks production. When the price of an input (sugar) rises, the cost of producing soft - drinks increases. Producers are less willing to supply the same quantity at each price level, so the supply curve of the good (soft - drinks) shifts to the left.
Answer:
A. soft drinks shifts to the left