AP® Macroeconomics

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Supply and Demand Both Shift: Peanuts

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Fewer young people are choosing​ to go into peanut farming as more of them move to large cities and go to college. At the same time, fewer companies are buying peanuts to use in their products as they become more aware of peanut allergy problems.

What is most likely happening in the market for peanuts?

A

There is an unknown change in the equilibrium price of peanuts and the equilibrium quantity of peanuts is decreasing.

B

There is an unknown change in the equilibrium price of peanuts and the equilibrium quantity of peanuts is increasing.

C

The equilibrium price of peanuts is staying the same and the equilibrium quantity is decreasing.

D

The equilibrium price of peanuts is decreasing and the equilibrium quantity is increasing.

E

The equilibrium price of peanuts is increasing equilibrium quantity of peanuts is decreasing.