Friday, October 3, 2014

If peanut butter and jelly are complement goods and the price for peanut butter goes up what will be the impact on the demand for jelly?

If peanut butter and jelly are complement goods and the price for peanut butter goes up what will be the impact on the demand for jelly?
Given the scenario , there should be less demand for the jelly since the costs for peanut butter has now risen assuming that fewer jars of peanut butter are being purchased due to increase in prices .

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