Answered

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Which of the following would cause a decrease in the equilibrium price of Gatorade?

A. The cost of a key input used to produce Gatorade has increased.
B. A new study claims consumption of Gatorade is bad for your health.
C. A greater percentage of athletes prefer to drink Gatorade after a workout.
D. The price of PowerAde (a substitute good) has increased.

Sagot :

GinnyAnswer

Final answer:

An increase in supply leads to a fall in equilibrium price, while factors like substitute product pricing and input cost increases can cause a decrease in Gatorade's price.


Explanation:

An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.

Factors such as an increase in the price of a substitute product or an increase in production costs (an increase in input prices) can lead to a decrease in the equilibrium price of a good like Gatorade.


Learn more about Equilibrium Price and Supply here:

https://brainly.com/question/51353618


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