13. Assume that the market below is for peanut butter and the price of jellyjust went way up. What would happen to equilibrium price and quantitywith the change in demand for peanut butter? *$10$9$8a $7$6$5$430 40. 50Quantity1020607080A. Both equilibrium quantity and equilibrium price would increaseB. Both equilibrium quantity and equilibrium price would decreaseO C. Equilibrium price and quantity would not change.

Peanut butter and jelly are substitutes. So, when price of jelly incraeses, quantity of jelly…

Answered: 13. Assume that the market below is for…

13. Assume that the market below is for peanut butter and the price of jelly just went way up. What would happen to equilibrium price and quantity with the change in demand for peanut butter? *

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

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Question

13. Assume that the market below is for peanut butter and the price of jelly
just went way up. What would happen to equilibrium price and quantity
with the change in demand for peanut butter? *
$10
$9
$8
a $7
$6
$5
$4
30 40. 50
Quantity
10
20
60
70
80
A. Both equilibrium quantity and equilibrium price would increase
B. Both equilibrium quantity and equilibrium price would decrease
O C. Equilibrium price and quantity would not change.

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