A major grocery store chain switches from bagging groceries in paper sacks to bagging them in plastic bags. As a result, 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 purchased by the chain is likely to increase.
D)none of the above

Question

A major grocery store chain switches from bagging groceries in paper sacks to bagging them in plastic bags. As a result, 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 purchased by the chain is likely to increase.
D)​none of the above

Quizplus · Accepted Answer

The increased demand for plastic bags will cause the market price for plastic bags to increase.

A Major Grocery Store Chain Switches from Bagging Groceries in Paper