The Graph Illustrates the Demand for Peanuts

question 86

Multiple Choice

The graph illustrates the demand for peanuts. Peanuts are a normal good because

• A) the demand curve shows that, if the price of peanuts rises, there is a movement along the demand curve to a lower quantity demanded.
• B) peanuts have both substitutes and complements.
• C) the demand for peanuts increases when the price of one of its substitutes rises.
• D) the demand curve for peanuts slopes downward.
• E) the demand for peanuts increases when income increases.

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