Today,the Price of Peanuts Increases

question 99

Multiple Choice

Today,the price of peanuts increases.Peanut butter producers and peanut butter consumers expect that the price of peanut butter will rise in the future.In the current market for peanut butter,the equilibrium price rises and the equilibrium quantity increases.It must be the case that

• A)the supply of peanut butter decreased by more than the demand for peanut butter increased.
• B)the supply of peanut butter decreased by more than the demand for peanut butter decreased.
• C)the demand for peanut butter increased by more than the supply of peanut butter decreased.
• D)the demand for peanut butter increased by more than the supply of peanut butter increased.
• E)peanut butter producers and peanut butter consumers have incorrect expectations.

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Definitions:

Stock Price

The current market price per share at which a company's stock can be bought or sold.

Bond Interest

The periodic payment made to bondholders as a return on their investment, typically expressed as a percentage of the bond's face value.

Maturity

The date on which a financial obligation must be repaid or a financial instrument, such as a bond, reaches its final due date and the principal is returned to investors.

Principal Payment

The portion of a loan payment that goes towards paying down the original amount borrowed, as opposed to interest.