In 2014, the price of peanuts increased. In the market for peanut butter, this change lead to ________ and which therefore ________ the price of peanut butter and ________ the quantity of peanut butter.

Question

Quizplus · Accepted Answer

The increase in the price of peanuts, a key input for peanut butter, would decrease the supply of peanut butter. This decrease in supply would lead to an increase in the price of peanut butter and a decrease in the quantity of peanut butter sold.

In 2014, the Price of Peanuts Increased