Asked by
Cindy Truong
on Dec 16, 2024
Verified
Which of these can possibly account for a decrease in the demand for peanut butter,a normal good?
A) An increase in the supply of peanut butter
B) An increase in the price of peanut butter
C) A substantial increase in the price of bread
D) A drought in Georgia that destroyed 30 percent of the peanut crop
E) An increase in consumer income
Peanut Butter
Peanut Butter is a food paste or spread made from ground dry roasted peanuts, often containing additional ingredients that modify the taste or texture.
Decrease in Demand
A reduction in the quantity of a good or service that consumers are willing and able to purchase at various prices.
Drought in Georgia
A prolonged period of deficient rainfall resulting in water shortage in the state of Georgia.
- Gain insight into how changes in prices influence consumer demand, through the mechanisms of the income and substitution effects.
- Recognize factors that cause shifts in demand and supply curves.
- Understand how changes in consumer preferences and population demographics affect demand.
Verified Answer
SA
Learning Objectives
- Gain insight into how changes in prices influence consumer demand, through the mechanisms of the income and substitution effects.
- Recognize factors that cause shifts in demand and supply curves.
- Understand how changes in consumer preferences and population demographics affect demand.