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, the increase in the price of Coke occurs as a result of a(n):

Question

Quizplus · Accepted Answer

The increase in the price of sugar, an important ingredient in producing Coke, would cause a decrease in the supply of coke since it would be more expensive for bottlers to produce, leading to an increase in the price of Coke.

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