In 2011,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

An increase in the price of peanuts would lead to a decrease in the supply of peanut butter, since it would become more expensive for producers to make peanut butter. This would then lead to an increase in the price of peanut butter and a decrease in the quantity of peanut butter available in the market.

In 2011,the Price of Peanuts Increased