In 2014, 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
Consequently, in the current market for peanut butter there was ________ which resulted in a ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) a decrease in supply of peanut butter and an increase in demand for peanut butter; rise; an increase, decrease or possibly no change
B) a decrease in supply of peanut butter and a decrease in demand for peanut butter; rise, fall, or possibly no change; a decrease
C) an increase in supply of peanut butter and a decrease in demand for peanut butter; fall; an increase, decrease or possibly no change
D) a decrease in supply of peanut butter and an increase in demand for peanut butter; fall; an increase, decrease or possibly no change
A
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A relatively steep aggregate demand curve indicates that
A) velocity is relatively constant. B) the economy is near full employment. C) inflation is relatively high. D) spending is insensitive to changes in the price level.
Monopolistically competitive firms can achieve product differentiation through:
A. creating a product that cannot be easily substituted with a rival's product. B. creating a truly different product. C. creating the perception of differences in their product. D. All of these statements are true.
Which of the following is most likely to cause the long-run aggregate supply curve to shift rightward?
What will be an ideal response?
What is an increasing cost industry?
What will be an ideal response?