Which of the following will cause a decrease in the demand for peanut butter?
A) an increase in the supply of peanut butter
B) an increase in the price of peanut butter
C) a doubling of the price of bread
D) a drought in Georgia that destroyed 30 percent of the peanut crop
E) an increase in consumer income

Question

Quizplus · Accepted Answer

A doubling of the price of bread, which is a complementary good to peanut butter, would likely decrease the demand for peanut butter as consumers may buy less bread and, consequently, less peanut butter.

Which of the Following Will Cause a Decrease in the Demand