Which one of the following would not cause the demand for Coca-Cola to shift? A. Coca-Cola increases its advertising expenditures by 20 percent. B. A new study finds that drinking Coca-Cola causes stomach cancer. C. The price of Pepsi-Cola increases. D. The cost of producing Coca-Cola increases.

Question

Felicity Kane

Business

22 July, 06:04

Which one of the following would not cause the demand for Coca-Cola to shift? A. Coca-Cola increases its advertising expenditures by 20 percent. B. A new study finds that drinking Coca-Cola causes stomach cancer. C. The price of Pepsi-Cola increases. D. The cost of producing Coca-Cola increases.

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Answers (1)

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Yosef Weiss · Answer 1

D - The cost of producing cocacola increases

Explanation:

When the cost of production for a product increases, this will lead to a high rise in the price of such product and when this happen, it will cause a decrease in the demand of the product because people tends to go for substitute product with lower price which will make the demand of the product not to shift.

Note * The higher the price of a product, the lower its demand and the lower the price, the higher its demand.