this years peanut crop is badly damaged by extreme heat and lack of rain. as a result, there is a shortage…

this years peanut crop is badly damaged by extreme heat and lack of rain. as a result, there is a shortage of peanuts to make peanut butter. the short supply causes grocery stores to raise prices on peanut butter. this results in lower jelly sales. what explains the decrease in the demand for jelly? jelly is in competition with peanut butter. jelly is a substitution for peanut butter. jelly and peanut butter are equilibrium goods. jelly and peanut butter are complementary goods.

this years peanut crop is badly damaged by extreme heat and lack of rain. as a result, there is a shortage of peanuts to make peanut butter. the short supply causes grocery stores to raise prices on peanut butter. this results in lower jelly sales. what explains the decrease in the demand for jelly? jelly is in competition with peanut butter. jelly is a substitution for peanut butter. jelly and peanut butter are equilibrium goods. jelly and peanut butter are complementary goods.

Answer

Brief Explanations:

Complementary goods are those that are typically consumed together. When the price of peanut - butter rises due to a shortage, the quantity demanded of peanut - butter falls. Since jelly and peanut - butter are often used together, the demand for jelly also decreases.

Answer:

Jelly and peanut butter are complementary goods.