Which of the following could cause an increase in the demand for peanut butter?

Question

Quizplus · Accepted Answer

A decrease in the price of bread could lead to an increase in demand for peanut butter as they are complementary goods often consumed together. A decrease in consumer income (choice A) would likely lead to a decrease in demand for peanut butter as people may look for cheaper alternatives. An increase in the supply of peanut butter (choice B) would likely lead to a decrease in its price, but it would not necessarily increase demand unless complementary goods are affected. A drought in Georgia that destroys 30 percent of the peanut crop (choice D) would likely decrease the supply of peanut butter, leading to an increase in its price and a decrease in demand, as consumers switch to other alternatives.

Which of the Following Could Cause an Increase in the Demand