Question

price of bread increases. if peanut-butter is a complement, we would expect to see group of answer choices caramel's quantity demand increase. caramel's demand decrease. caramel's demand increase. caramel's quantity demand decrease.

Answer 1

Price of bread increases. if peanut-butter is a complement, we would expect to see caramel's quantity demand decrease.

The amount of bread demanded will decline as bread prices rise. The cost of bread will rise in tandem with the rise in demand. Keep in mind that peanut butter and jelly go well together.

Even though the price of jelly remained the same, we are eating less jelly because we are eating less peanut butter. Jelly's popularity declines (jelly demand curve shifts inward).

For peanut butter, the income elasticity is -3. According to this, peanut butter is a subpar product. Any good with a negative income elasticity is subpar because you consume less of it as income levels rise. The amount supplied will eventually reach zero.

To know more about  complement product, refer:

brainly.com/question/10423146

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