Multiple Choice
What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts fell,the price of jelly (a complementary good) fell,more firms decided to produce peanut butter,and health officials announced that eating peanut butter was bad for you
A) price will fall and the effect on quantity is ambiguous
B) quantity will fall and the effect on price is ambiguous
C) quantity will rise and the effect on price is ambiguous
D) effect on both price and quantity is ambiguous
Correct Answer:
Verified
Correct Answer:
Verified
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