Questions: Question 12 Which of the following would most likely increase the demand for peanut butter? a decrease in the price of jelly, a good that is often used with peanut butter the discovery that excessive consumption of peanut butter is harmful to one's health crop failures that raise the price of peanuts the invention of a new product that consumers think is a good substitute for peanut butter Question 13

The answer is A: a decrease in the price of jelly, a good that is often used with peanut butter.

Explanation for each option:

A. A decrease in the price of jelly, a good that is often used with peanut butter: This is correct because peanut butter and jelly are complementary goods. When the price of jelly decreases, consumers are more likely to buy more jelly, which in turn increases the demand for peanut butter.

B. The discovery that excessive consumption of peanut butter is harmful to one's health: This would likely decrease the demand for peanut butter, as consumers would be discouraged from buying it due to health concerns.

C. Crop failures that raise the price of peanuts: This would likely decrease the supply of peanut butter, not increase the demand. Higher prices for peanuts could lead to higher prices for peanut butter, which might reduce demand.

D. The invention of a new product that consumers think is a good substitute for peanut butter: This would likely decrease the demand for peanut butter, as consumers might switch to the new substitute product.