Many factors affect the supply and demand of carbonated sodas.
a. Draw and accurately label a graph that shows a decrease in the supply of sodas to the market, you must accurately label the graph.
b. Draw and accurately label a graph that shows a drop in the average household income in the United States from $42,000 to $41,000.
c. Draw and accurately label a graph that shows an improvement in the soda making technology.
d. Draw and accurately label a graph that shows an increase in the price of high fructose corn syrup (the sugar used in sodas). Under what economic circumstances should soda producers switch back to using cane sugar? Are there any other managerial consequences to this question?
e. What are the two most significant unintended economic consequences of a decrease in the supply of sodas?
f. If you were seated on a cross-country flight next to the CEO of a major soda bottler who mentioned the troubling economic news of average family incomes falling, what would be your response? Include both short term and long-term upsides and downsides to the issue.