A change in the quantity demanded of peanuts, a factor of production used to produce chocolate-covered peanuts, will occur if:
A) the price of peanuts decreases.
B) the price of chocolate-covered peanuts increases.
C) the demand for chocolate-covered peanuts decreases.
D) a new, improved chocolate-covered-peanut-making machine is purchased by candy companies.

Question

Quizplus · Accepted Answer

A change in the price of peanuts, a factor of production, will affect the cost of production for chocolate-covered peanuts, causing a shift in the supply curve. However, none of the other choices mentioned would directly affect the quantity demanded of peanuts used in producing chocolate-covered peanuts.

A Change in the Quantity Demanded of Peanuts, a Factor