Consider the Market for Peanut Butter

question 194

Multiple Choice

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter) along with a drought in peanut growing areas,the

• A) equilibrium quantity of bread increases.
• B) equilibrium quantity of peanut butter definitely decreases.
• C) equilibrium quantity of peanut butter might increase or might decrease.
• D) equilibrium price of peanut butter definitely rises.
• E) equilibrium price of peanut butter definitely falls.

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