Assume there is a decrease in the demand for soda, some of which comes in aluminum cans. In the market for bauxite, the main mineral source of aluminum, the equilibrium price would _____ and the equilibrium quantity would _____.
A) rise; fall
B) fall; fall
C) rise; rise
D) fall; rise

Question

Quizplus · Accepted Answer

A decrease in the demand for soda, which uses aluminum cans, would lead to a decrease in the demand for aluminum. Since bauxite is a primary source of aluminum, the demand for bauxite would also decrease, leading to a fall in both the equilibrium price and quantity of bauxite.

Assume There Is a Decrease in the Demand for Soda