Peanut Butter and Jelly Are Complements for Consumers

question 21

Multiple Choice

Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ which lead to ________ in the price of jelly and ________ in the quantity of jelly.

• A) demand for jelly; a decrease; a decrease
• B) supply of jelly; a decrease; an increase
• C) supply of jelly; an increase; a decrease
• D) demand for jelly; an increase; an increase

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Definitions:

Domestic Quantity Demanded

The aggregate quantity of a product or service that buyers in a particular nation are ready and capable of buying at a certain price.

Hypothetical Nations

Imaginary or theoretical countries used for the purpose of discussion, analysis, or study in various contexts.

Domestic Price

The price of goods or services within a country's borders, as opposed to their price in the global market.

World Equilibrium Price

The price level at which the supply and demand of a good on a global scale are balanced, leading to a stable international market price.