Equilibrium price and output for soft drinks


Problem: The switch to the use of HFCS from sugar in soft drinks was prompted in large part by its relatively lower price. Assuming a competitive market, what effect would this change have on the equilibrium price and output for soft drinks?

  • price rises, output falls
  • price falls, output rises
  • price rises, output rises
  • price falls, output falls

Solution Preview :

Prepared by a verified Expert
Microeconomics: Equilibrium price and output for soft drinks
Reference No:- TGS01747534

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)