Asked by Varuna Sharma on Jun 29, 2024
Verified
A decrease in the price of peanuts will cause a leftward shift in the supply curve of peanut butter.
Supply Curve
A graph that illustrates the relationship between the price of a good and the quantity of the good that producers are willing to supply.
- Attain a basic understanding of the mechanisms of supply and demand, taking into account curve shifts precipitated by external determinants.
Verified Answer
PB
Prince BensonJul 02, 2024
Final Answer :
False
Explanation :
A decrease in the price of peanuts will lead to a decrease in the cost of production for peanut butter manufacturers. This will lead to an increase in the supply of peanut butter, causing a rightward shift in the supply curve, not a leftward shift.
Learning Objectives
- Attain a basic understanding of the mechanisms of supply and demand, taking into account curve shifts precipitated by external determinants.
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