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The price of peanuts increases. At the same time, we see the price of Jelly rise. How does this affect the market for peanut butter? A. the demand curve will shift to the left; the supply curve will shift to the left. B. the demand curve will shift to the left; the supply curve will shift to the right. C. the demand curve will shift to the right; the supply curve will shift to the left. D. the demand curve will shift to the right; the supply curve will shift to the right. I understand that the supply curve shifts to the left, but how does the demand curve shift to the right considering the price of its complement product (Jelly) increased? I've learned that the increase in the price of a complement product makes demand decrease. Could you please explain why the answer is C.? increase in the price of peanut butter will cause the demand curve for jelly to shift to theleft, since as fewer units of peanut butter are demanded due to the higher price of peanutbutter, fewer units of jelly will also be demanded at any given price for jelly.8.Answer a.Since ham and turkey are substitutes, when the price of ham decreases, thiscauses the quantity of ham demanded to increase. As more units of ham are demanded,fewer units of turkey are demanded at every price. The demand for turkey therefore shiftsto the left.9.Answer a.As the price of good Y increases, this results in a decrease in the quantitydemanded of good Y. Since the demand for good X decreases, this implies that good Yand good X are consumed together; thus good X and good Y are complements.10.Answer b.As the price of good Y decreases, this results in an increase in the quantitydemanded of good Y. Since the demand for good X increases when the quantity demand-ed of good Y decreases, this implies that good X is a substitute for good Y.11.Answer a.When Jon’s income increases, the quantity of good X he demands at anygiven price falls, which implies that good X is an inferior good.12.Answer b.Both Jon’s income and the quantity of steak he demands increases; thereforesteak is a normal good.13. Answer a.An increase in population shifts the demand curve to the right, as theincrease in population implies a larger number of consumers of the product.14.Answer c.An increase in the number of buyers causes the quantity demanded of thegood to increase at every price, and the demand curve shifts to the right.15. Answer d.To find the market demand curve, hold price constant and then add thequantity of the good demanded by each of the consumers. Thus, if the price of the goodis $10, then the total of Peter’s, Anya’s, and Pablo’s demand must add up to 100 unitsaccording to the table provided in the question.16.Answer b.This question is asking you to recall that a change in the price of the good, hold-ing everything else constant, results in a movement along the curve. This movement alongthe curve causes a change in the quantity supplied and not a change in the supply curve.17.Answer a.Ground beef is an input in the production of Fast Wally’s hamburgers. Whenground beef gets more expensive, this increases the cost of producing hamburgers, whichcauses the supply curve to shift to the left.18.Answer b.When the cost of raw materials decreases, more batteries can be produced atany given price. This decrease in the cost of raw materials causes the supply curve for bat-teries to shift to the right.19.Answer a.When input prices decrease, producers are willing to supply more units of thegood at every price.20.Answer b.Since an increase in the production of one of the goods results in a decreasein the production of the other good, these two goods must be substitutes in production. What happens in the market for jelly when the price of peanut butter increases?What will happen to the demand or quantity demanded for jelly if the price of peanut butter increases? Answer: The demand curve for jelly will shift to the left (decrease). Since you would buy less peanut butter when its price increases, you will also buy less jelly (since they are complements).
What will happen in the market for peanut butter when the price of jelly increases and a frost wipes out a large portion of the US peanut crop?When the price of jelly increases, the quantity demanded of jelly decreases. Because peanut butter and jelly are complementary goods, you will also want less peanut butter. Thus, the demand for peanut butter decreases.
What happens to the market for peanut butter after the price of jelly goes down?If the price of jelly decreases, the demand for peanut butter, a complementary good to jelly, will increase. The increase in the demand for peanut butter will cause the price of peanut butter to rise.
What would happen to supply of peanut butter if the price of peanuts goes up?If the price of peanuts went up, the price of jelly fell, fewer firms decided to produce peanut butter and health officials announced that eating peanut butter was good for you. So because the price of peanut peanuts has gone up, the price of peanut butter will also go up. There's less peanut butter supply.
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What happens in the market for peanut butter when the price of jelly increases?
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