Assume that peanut butter and jelly are complementary goods. A decrease in the number of peanut butter suppliers will cause the:

Question

Quizplus · Accepted Answer

According to the question, peanut butter and jelly are complementary goods, which means they are often consumed together. Therefore, a decrease in the number of peanut butter suppliers would lead to a decrease in the demand for peanut butter, which would eventually lead to a decrease in the demand for jelly because fewer people would be consuming peanut butter and jelly sandwiches. Therefore, the correct answer is D: the demand for jelly to decrease.

Assume That Peanut Butter and Jelly Are Complementary Goods