Peanut butter and jelly are complements in consumption.Assuming that the supply curve of peanut butter is upward-sloping,if there is a decrease in the price of jelly,producer surplus in the peanut butter market:
A)will increase.
B)will decrease.
C)will not change.
D)may change,but it is impossible to tell whether it will increase or decrease.

Question

Quizplus · Accepted Answer

Peanut butter and jelly are complements in consumption, meaning they are often consumed together. If the price of jelly decreases, the demand for peanut butter may increase. This increase in demand will cause an increase in the equilibrium price and quantity of peanut butter, resulting in an increase in producer surplus. Therefore, the correct answer is A) will increase.

Peanut Butter and Jelly Are Complements in Consumption