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AP® Microeconomics

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Supply and Demand: Peanuts, Peanut Butter and Jelly

APMICR-VWSBRE

Peanuts are an input in peanut butter, and jelly is a complement for peanut butter. Assuming no other changes, if the price of peanuts increases, what will happen in the market for jelly?

A

Demand will increase.

B

Demand will decrease.

C

Supply will increase.

D

Supply will decrease.

E

Neither supply nor demand will change.