Peanut butter and jelly are complements for consumers.In 2011,the price of peanut butter increased.As a result,the ________ which lead to ________ in the price of jelly and ________ in the quantity of jelly.

Question

Quizplus · Accepted Answer

Peanut butter and jelly are complements, which means they are consumed together. The increase in the price of peanut butter would lead to a decrease in the demand for peanut butter. Since jelly is a complement, the decrease in the demand for peanut butter would lead to a decrease in the demand for jelly as well. Therefore, the demand for jelly would decrease, leading to a decrease in the price of jelly and a decrease in the quantity of jelly demanded.

Peanut Butter and Jelly Are Complements for Consumers