Input Costs and Supply Shifts Steps:

• Identify that a rightward supply shift means more quantity supplied at each price.
• Recall supply shifters: input costs, subsidies/taxes, technology, producer expectations.
• Evaluate each option's impact on production costs for sugar-sweetened drinks.
• Select the option that lowers costs, increasing supply.

Why A is correct:

• A fall in sugar price reduces input costs, lowering production expenses and increasing supply per the law of supply.

Why the others are wrong:

• B: Removing a subsidy on sugar raises production costs, shifting supply left.
• C: Higher consumer income affects demand, not supply.
• D: Increasing a tax on sugar raises costs, shifting supply left.

Final answer: A