Share
Explore BrainMass

equilibrium price and output

The switch to the use of HFCS from sugar in soft drinks was prompted in large part by its relatively lower price. Assuming a competitive market, what effect would this change have on the equilibrium price and output for soft drinks?

price rises, output falls
price falls, output rises
price rises, output rises
price falls, output falls

Solution Preview

The switch to the use of HFCS from sugar in soft drinks was prompted in large part by its relatively lower price. Assuming a competitive market, what effect would this change have ...

Solution Summary

Determine the effect on equilibrium price and output.

$2.19