A major grocery store chain switches from bagging groceries in paper sacks to bagging them in plastic bags.The grocery chain demands more plastic bags than are available at the current market price.As a result:
A) the market price for paper sacks is likely to increase.
B) the market price for plastic bags is likely to increase.
C) the quantity of paper sacks is likely to increase.
D) none of the above

Question

Quizplus · Accepted Answer

With the increased demand for plastic bags, the market price for plastic bags is likely to increase. The switch from paper to plastic bags does not directly impact the demand for paper sacks or their market price.

A Major Grocery Store Chain Switches from Bagging Groceries in Paper