If peanut butter and grape jelly are complementary products, which diagram above illustrates the effect on the peanut butter market as a result of a decrease in the price of grape jelly?

Question

Quizplus · Accepted Answer

A decrease in the price of grape jelly, a complementary product, would lead to an increase in demand for peanut butter, causing a shift in the demand curve to the right. This is depicted in diagram A, where the demand curve shifts from D1 to D2, resulting in a higher equilibrium price and quantity. The other diagrams do not show a shift in demand, but rather a shift in supply or a change in equilibrium price due to a change in supply or demand.

If Peanut Butter and Grape Jelly Are Complementary Products, Which