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When demand for one good falls (gasoline and ethanol) leads to an increase in price for other goods (beer and soda)

Summary:
See A Coronavirus Chain Reaction: Less Driving Means Less Fizz for Sodas: Carbon-dioxide output is down, as the drop in gasoline demand slows fuel production by Vipal Monga of The WSJ.I don't think I have heard of anything like this before. If the supply of carbon dioxide (an ingredient in soda and beer) falls, its price will rise. Then supply will decrease for beer and soda since the price of a resource used to make it has increased.Excerpts: "As the summer season approaches, consumers might end up paying more for their beer and soft drinks. The reason? The cost of the bubbles in the drinks is going up.""Carbon dioxide is a byproduct of ethanol, which by federal mandate is mixed into gasoline to help it burn more cleanly. But fewer people are driving because of the Covid-19

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See A Coronavirus Chain Reaction: Less Driving Means Less Fizz for Sodas: Carbon-dioxide output is down, as the drop in gasoline demand slows fuel production by Vipal Monga of The WSJ.

I don't think I have heard of anything like this before. If the supply of carbon dioxide (an ingredient in soda and beer) falls, its price will rise. Then supply will decrease for beer and soda since the price of a resource used to make it has increased.

Excerpts:

"As the summer season approaches, consumers might end up paying more for their beer and soft drinks. The reason? The cost of the bubbles in the drinks is going up."

"Carbon dioxide is a byproduct of ethanol, which by federal mandate is mixed into gasoline to help it burn more cleanly. But fewer people are driving because of the Covid-19 lockdowns, and demand for gasoline has plunged, prompting ethanol plants to shut down. That has put pressure on the source for roughly 40% of all industrial carbon dioxide produced nationwide—a key ingredient for soft drinks and beers.

Carbon-dioxide production this year has fallen by roughly 30% from last year’s levels"

"A Coke spokeswoman said the North American drop in carbon-dioxide production is being balanced by less demand for soft drinks because many restaurants and sports stadiums are currently closed. “We do not foresee any concerns about supply at this time,” she said.

Bob Pease, president of the Brewers Association trade group, warned that brewers could soon start passing cost increases on to customers, especially as the return of restaurant demand in states such as Texas, Georgia and Wisconsin, which have eased lockdowns, strains gas supplies. “This shortage could become critical in short order,” he said."

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