Skippy loves peanut butter. Skippy reads on the internet that 75 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to more than double by the end of the year. As a result,
a. Skippy's demand for peanut butter will increase, but not until the end of the year.
b. Skippy's demand for peanut butter increases today.
c. Skippy's demand for peanut butter decreases as he considers buying almond butter.
d. Skippy's demand for peanut butter shifts left today.
Question 2
The SRAS curve is ____ with real output levels that ____.
a. upward sloping; vary positively with the price level
b. upward sloping; vary negatively with the price level
c. vertical; are equal to the natural level of real output at all price levels
d. vertical; can be either greater than or less than the natural level of real output
Squirrel Eating a peanut
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