Author Question: In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers ... (Read 212 times)

clippers! · **on:** Jun 29, 2018

In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers.

Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) rise; an increase
B) rise; a decrease
C) fall; a decrease
D) fall; an increase

Question 2

The demand for labor increases (that is, the demand for labor curve shifts rightward) if the

A) wage rate increases.
B) wage rate decreases.
C) price of the firm's output rises.
D) price of the firm's output falls.