Question

Other things remaining the same, if a large part of the population decided against having soda for health reasons, this would result in:

a.an increase in the quantity of soda supplied.
b.an increase in the quantity supplied of complements like fries and burgers.
c.a decrease in the price of soda.
d.a rightward shift of the demand curve for soda.
e.a decrease in the quantity demanded of substitutes like mineral water

Answer 1

The correct answer is option c.

Step-by-step explanation:

If a large part of the population realizes that soda is bad for health, they will stop consuming soda. This will cause the demand for soda to decline.

A decrease in demand will cause the demand curve to shift to the left, this leftward shift in the demand curve will cause the price of soda to decline.

This has been shown in the graph given below.