The Equilibrium Price of Peanut Butter Is $5

question 54

Multiple Choice

The equilibrium price of peanut butter is $5.A study comes out that says the fat in peanut butter is good for the heart.Holding all other factors constant,which of the following scenarios could happen?

• A) The price of peanut butter increases to $7 because of a supply shift.
• B) The price of peanut butter decreases to $4 because of a supply shift.
• C) The price of peanut butter decreases to $4 because of a demand shift.
• D) The price of peanut butter increases to $7 because of a demand shift.
• E) The price of peanut butter increases to $7 because of a demand and a supply shift.

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