Asked by Mason Smith on Jun 10, 2024
Verified
People like consuming peanut butter and jelly together.The price of peanuts increases.At the same time,we see the price for Jelly rise.How does this affect the market for peanut butter?
A) The demand curve will shift to the left;the supply curve will shift to the left
B) The demand curve will shift to the left;the supply curve will shift to the right
C) The demand curve will shift to the right;the supply curve will shift to the left
D) The demand curve will shift to the right;the supply curve will shift to the right
Peanut Butter
A spread made from ground, dry-roasted peanuts, often sweetened or salted.
Market Affect
The influence or impact that market dynamics, including changes in supply and demand, have on prices, production, and consumption.
- Understand the ideas surrounding complement and substitute goods and how they affect demand levels.
- Understand the ways in which elements such as earnings, cost of associated products, and external aspects such as health advantages impact the curves of demand and supply.
Verified Answer
WL
Wonder LungaJun 11, 2024
Final Answer :
A
Explanation :
As the prices of both peanuts and jelly rise, consumers may choose to substitute peanut butter with other spreads, causing a decrease in demand for peanut butter. Additionally, if the cost of producing peanut butter increases, suppliers may reduce the amount they produce, leading to a decrease in supply. Both of these factors suggest a leftward shift in both the demand and supply curves for peanut butter.
Learning Objectives
- Understand the ideas surrounding complement and substitute goods and how they affect demand levels.
- Understand the ways in which elements such as earnings, cost of associated products, and external aspects such as health advantages impact the curves of demand and supply.