In 2014, the Price of Peanuts Was Rising, Which Led

question 434

Multiple Choice

In 2014, the price of peanuts was rising, which led peanut butter sellers to expect the price of peanut butter would rise in the future. Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter.

• A) an increase in demand for peanut butter; an increase; an increase
• B) an increase in supply of peanut butter; a decrease; an increase
• C) a decrease in demand for peanut butter; a decrease; a decrease
• D) a decrease in supply of peanut butter; an increase; a decrease

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Definitions:

Mergers

The combination of two or more companies into a single entity, with the goal of enhancing competitiveness or expanding market share.

Antitrust Laws

Regulations designed to promote competition and prevent monopolies and other forms of market domination that could be detrimental to consumer interests.

Department of Justice

The federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.

Federal Trade Commission

A federal agency established to protect consumers and promote competition by preventing anticompetitive, deceptive, and unfair business practices.