Assume that peanut butter and jelly are complementary goods. A decrease in the number of peanut butter suppliers will cause the:
a. demand for peanut butter to increase.
b. supply of peanut butter to increase.
c. demand for jelly to increase.
d. demand for jelly to decrease.
e. supply of jelly to decrease.
d
You might also like to view...
The figure above shows the demand and cost curves for a single-price monopoly. What level of output maximizes the firm's economic profit?
A) 0 units B) 20 units C) 30 units D) 50 units
Answer the following statement true (T) or false (F)
1) The limited money income of consumers results in a so-called budget constraint. 2) A rational consumer will cease purchasing a product at that quantity where marginal utility begins to diminish. 3) When a consumer is maximizing total utility, he or she cannot increase total utility by reallocating expenditures among different products. 4) When the price of a product falls, the income effect induces the consumer to purchase more of it while the substitution effect prompts her to buy less.