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. In the current market for peanut butter, the price rises and the quantity increases
This set of results means that A) demand increased by more than supply decreased.
B) supply decreased by more than demand increased.
C) demand increased by more than supply increased.
D) supply decreased by more than demand decreased.
A
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In a graphic relationship, shifts in a curve are caused by a change in:
a. the slope of the curve. b. a factor not measured on the axes of the graph. c. one of the factors measured on either axes of the graph. d. any factor, whether measured on the axes of the graph of not.
Suppose a local bookstore notices that a 2 percent increase in book prices leads to a 2 percent decrease in the number of books sold. Which of the following is true?
a. Demand for books is price elastic. b. The store's sales revenue did not change. c. Demand for books is price inelastic. d. Demand for books is perfectly inelastic. e. The bookstore could increase revenue by further lowering prices.