-Assume that Figure 4-16 shows the supply of soda.An increase in the price of syrup used in the production of soda will shift supply from A)S₁ to S₂. B)S₂ to S₁. C)S₂ to S₃. D)S₁ to S₃.

Question

Quizplus · Accepted Answer

An increase in the price of syrup, a production input for soda, would increase production costs, leading to a decrease in the supply of soda. This is represented by a shift from a higher supply curve (indicating more supply) to a lower one (indicating less supply).

-Assume That Figure 4-16 Shows the Supply of Soda