In 2011,the price of peanuts was rising,which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future.Suppose the effect on the buyers was larger than the effect on the sellers.Consequently,in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

Question

Quizplus · Accepted Answer

When buyers expect higher future prices, demand increases, leading to a rise in current prices. If the effect on buyers is larger than on sellers, the quantity sold increases as demand outpaces supply.

In 2011,the Price of Peanuts Was Rising,which Lead Peanut Butter