Question

The price of soft drinks increases. Which of the following is not part of the likely chain of events that follows from this price​ change? A. Producers of soft drinks increase their production of soft drinks. B. The manufacturers of soda−canning machines lay off some workers. C. Some consumers of soft drinks reduce their consumption of soft drinks. D. The demand for fruit juices increases.

Answer 1

When soft drink prices increase, consumers may reduce consumption, and the demand for alternative beverages could rise, but it would not likely result in soda-canning machine manufacturers laying off workers, as higher prices may boost production.

Step-by-step explanation:

When the price of soft drinks increases, we can anticipate several market responses according to economic principles:

• Producers of soft drinks may increase their production if they expect the price increase to be sustained and demand to remain stable.
• Individual consumers of soft drinks might reduce their consumption due to the higher cost, which signifies a decrease in the quantity demanded.
• The demand for substitutes, such as fruit juices, might increase if consumers look for alternative beverages.

However, one consequence that does not align with economic theory is:

B. The manufacturers of soda-canning machines lay off some workers.

In the context of an increase in the price of soft drinks, this would not normally happen because higher prices would likely lead to higher production volume, thus maintaining or potentially increasing the demand for soda-canning machines and the workers who manufacture them.

Answer 2

The correct answer is the option B: The manafactures of soda-canning machines lay off some workers.

Step-by-step explanation:

On the one hand, all of the events presented in the text will happen after the price of the good increases. And that is because of the regular laws of the economy, for example, when the price of a good increases the supply of this one will increase as well and the demand of substitutes of the product will increase as well and the demand of it will decrease.

On the other hand, the manufactures of product that are substitutes to the good will increase its production due to the fact that now their product will be more demanded because the other good have just increased in price. So it is not possible that the manufactures of soda-canning lay off some of their workers.