Coca-Cola bottlers increased their prices as the price of sugar (an important ingredient in producing Coke) rose sharply in the late 1980s. Under these circumstances, what caused the increase in the price of Coke?

Question

Quizplus · Accepted Answer

The increase in the price of sugar, an important ingredient in producing Coke, caused a decrease in supply, leading to an increase in the price of Coke.

Coca-Cola Bottlers Increased Their Prices as the Price of Sugar