A decrease in the price of peanuts will cause a leftward shift of the supply curve of peanut butter.

Name: A decrease in the price of peanuts will cause a leftward shift of the supply curve of peanut butter.
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Question

Quizplus · Accepted Answer

A decrease in the price of peanuts will lead to a lower cost of production for peanut butter manufacturers, thus causing an increase in the supply of peanut butter. This will result in a rightward shift of the supply curve of peanut butter, not a leftward shift.

A Decrease in the Price of Peanuts Will Cause a Leftward