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Glossary
Knowledge Check - Scenario 5

For the following scenario in the soft drinks market, answer the related question using the graphs below.


Scenario 5: Recent economic data show that incomes in America are rising.

1. Based on Scenario 5, which graph illustrates the change in the soft drinks market?

A. Graph 1

B. Graph 2

C. Graph 3

D. Graph 4

2. Based on Scenario 5, the supply curve for soft drinks

A. shifts to the right.

B. shifts to the left.

C. does not shift.

3. Based on Scenario 5, the demand curve for soft drinks

A. shifts to the right.

B. shifts to the left.

C. does not shift.

4. Based on Scenario 5, the equilibrium price of soft drinks

A. increases.

B. decreases.

5. Based on Scenario 5, the equilibrium quantity of soft drinks

A. increases.

B. decreases.