In the supply-and-demand diagram of the market for peanut butter,the equilibrium point has moved up and to the right.What could have caused this?
A) a fall in the price of peanuts
B) a rise in the price of peanuts
C) a rise in income,assuming that peanut butter is an inferior good
D) a shift in preferences toward peanut butter
E) none of the above

Question

Quizplus · Accepted Answer

A shift in preferences toward peanut butter would increase demand, causing the equilibrium point to move up and to the right.

In the Supply-And-Demand Diagram of the Market for Peanut Butter,the