ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase
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decrease
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not change at all
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None of the above
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Detailed explanation-1: -the goods are complements. If an increase in the price of peanut butter causes a decline in the demand for jelly, then: inelastic.
Detailed explanation-2: -Changes in the price of related goods and services Alternatively, if the price of complementary goods increases, the curve will shift inwards. The opposite is true for substitute goods. For example, if the price for peanut butter goes down significantly, the demand for its complementary good – jelly – increases.
Detailed explanation-3: -If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.
Detailed explanation-4: -Answer and Explanation: This option is correct because an increase in the price of peanut butter causes a decrease in the quantity demanded of peanut butter. It means the demand curve for peanut butter remains the same.