High-fructose corn syrup, which is derived from corn, is an important ingredient in the production of many soft drinks. If the price of corn increases, one would expect:
A)the supply curve for soft drinks to shift left.
B)the quantity supplied of soft drinks to increase.
C)the demand for soft drinks to increase.
D)the supply curve for soft drinks to shift right.

Question

Quizplus · Accepted Answer

Since high-fructose corn syrup is an important ingredient in the production of soft drinks and its price has increased, the cost of production will increase for soft drink manufacturers, causing them to supply less at any given price. This will cause the supply curve for soft drinks to shift left.

High-Fructose Corn Syrup, Which Is Derived from Corn, Is an Important