Peanut Butter and Jelly Are Complements in Consumption

question 202

Multiple Choice

Peanut butter and jelly are complements in consumption.Assuming that the supply curve of peanut butter is upward-sloping,if there is a decrease in the price of jelly,producer surplus in the peanut butter market:

• A)will increase.
• B)will decrease.
• C)will not change.
• D)may change,but it is impossible to tell whether it will increase or decrease.

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Definitions:

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Marked Up

Refers to the percentage increase in the price of a good or service over its original cost to achieve a profit.

Marked Down

Refers to a reduction in the selling price of goods or services, typically to clear inventory or to boost sales.

Sale Price

The final amount at which an item is sold after any discounts or promotions.