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You Love Peanut Butter

Question 101

Multiple Choice

You love peanut butter.You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought and that this will cause the price of peanuts to double by the end of the year.As a result,your demand for peanut butter


A) will increase but not until the end of the year.
B) increases today.
C) decreases as you look for a substitute good.
D) shifts left today.

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