Author Question: People like consuming peanut butter and jelly together. The price of peanuts increases. At the same ... (Read 133 times)

burton19126 · **on:** Jul 1, 2018

People like consuming peanut butter and jelly together. The price of peanuts increases. At the same time, we see the price for Jelly rise. This would make the price for peanut butter_____________ and the quantity demanded for peanut butter ____________.
a. Uncertain; decreases
b. Decreases; increases
c. Decreases; uncertain
d. Increases; uncertain

Question 2

You put your product on 20 off sale market A but leave it unchanged in market B. Sales in A increase from 840 to 1040 units per week while sales in B rise from 770 to 830 . The Difference-in-difference estimate of the effect of the price change is:
a. 80 units
b. 100 units
c. 120 units
d. 130 units