Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ increased, which led to ________ in the price of jelly and ________ in the quantity of jelly.

Question

Quizplus · Accepted Answer

When the price of peanut butter (a complement to jelly) increased, it likely led to a decrease in the demand for jelly because consumers tend to buy less of a product when its complement becomes more expensive. This decrease in demand for jelly would then lead to a decrease in both the price and quantity of jelly.

Peanut Butter and Jelly Are Complements for Consumers