Assume the cost of aluminum used by soft-drink companies increases. which of the following correctly describes the resulting effects in the market for canned soft drinks? i. the demand for soft drinks decreases. ii. the quantity of soft drinks demanded decreases. iii. the supply of soft drinks decreases. iv. the quantity of soft drinks supplied decreases. a. i and iv. b. iv only c. iii only. d. ii and iii.

Suppose a starbucks tall latte cost $4.00 in the united states, 5.00 euros in the euro area and $2.50 australian dollars in australia. nominal exchange rates are .80 euros per dollar and 1.4 australian dollars per u.s. dollar. where does purchasing power parity hold? a. both the euro area and australia. b. neither the euro area or australia. c. the euro area but not australia. d. australia but not the euro area.