-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

Question

Quizplus · Accepted Answer

A decrease in the price of sugar, which is an input in the production of soft drinks, would lead to a decrease in production costs. This would allow producers to supply more at each price level, represented by a shift from point a to point b, indicating a movement to a lower cost and higher quantity supply position.

-The Figure Above Shows Supply Curves for Soft Drinks