The graph represents the market for soft drinks. Suppose that one of the industry's major suppliers of soft drinks has decided to exit the market to focus on its snack foods. At the same time, the average price of soft drinks has increased and the total amount of soft drink sales has increased. Manipulate the graph to demonstrate these changes in the market for soft drinks. Soft Drinks Market Price Supply Demand Quantity
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If a major supplier of soft drinks exits the market, the supply of soft drinks will decrease. On the graph, this would be represented by a leftward shift of the supply curve. Show more…
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