> Supply and demand?

Supply and demand?

Posted at: 2015-07-28 
Assume that the cost of aluminum used by soda companies increases. Which of the following describes the resulting effects in the market for sodas distributed in aluminum cans?

The demand for sodas increases.

The quantity of sodas demanded decreases.

The supply of sodas decreases.

The quantity of sodas supplied decreases.

The increase in a raw material will cause an increase in the final product (soda) selling price. that will make the demand decreases. the higher the price, the less demand.

Others suggested the supply will decrease, actually that will not going to happen as the manufacturer wants to maintain the same profits.

Fourth answer. The supply decreases, as the costs of manufacturing have gone up. Third is similar, however, the soda does not change. The soda is still produced the same. The aluminum is not, so only the quantity supplied to the consumers decrease.

The quantity of sodas demanded decreases. Because the price goes up.

The supply of soda in cans will decrease. Pepsi for example would have sales on bottled soda.

None of the above, they will put prices up and demand won't decrease or increase. Things like that don't bother big companies who make fizzy drinks because the chavs will keep paying more for them. Same with chavvy walkers crisps, they shoot up in price and you get half a bag now but the chavs still want them.

Supply is defined as the total quantity of marketplace.Demand refers to the quantity of a good that is desired by buyers.