1
QuizMultiple Choice

Supply, Demand, and Price

Question 1 • EA Academy Civics 9

This year’s peanut crop is badly damaged by extreme heat and lack of rain. As a result, there is a shortage of peanuts to make peanut butter. The short supply causes grocery stores to raise prices on peanut butter. This results in lower jelly sales.

Answer
A
Jelly is in competition with peanut butter.
B
Jelly is a substitution for peanut butter.
C
Jelly and peanut butter are equilibrium goods.
D
Jelly and peanut butter are complementary goods.
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