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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Definitions:

Peer Economy

An economic model based on sharing access to goods and services between individuals, often facilitated through online platforms.

Vehicle-Sharing Service

A model of car rental where individuals can rent vehicles for short periods of time, often by the hour, facilitating urban mobility and reducing private car ownership.

Peer-to-Peer Lender

an online platform that matches people willing to lend money directly to individuals or businesses seeking to borrow, bypassing traditional financial institutions.

Shared Economy

An economic model where assets and services are shared between private individuals, typically via the internet.