Question: When the demand for zero sugar soft drinks increases due to changes in consumer tastes, and the supply of these drinks increases as a result

When the demand for zero sugar soft drinks increases due to changes in consumer tastes, and the supply of these drinks increases as a result of reductions in input prices, we will observe

Select one:

a.

an increase in the equilibrium quantity of soft drinks; the equilibrium price may increase or decrease.

b.

a decrease in the equilibrium price of soft drinks; the equilibrium quantity may increase or decrease.

c.

a decrease in the equilibrium price of soft drinks and no change in the equilibrium quantity.

d.

a decrease in the equilibrium quantity of soft drinks and no change in the equilibrium price.

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