Microeconomics with Study - Answer the following questions.
After you have studied Reading Between the Lines on pp. 74–75, answer the following questions.
a. What happened to the price of peanut butter in 2011?
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b. What substitutions do you expect might have been made to decrease the quantity of peanut butter demanded?
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c. What is the main complement of peanut butter and what do you predict happened in its market in 2011?
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d. What is one of the main substitutes in production for peanuts and what do you predict happened in its market in 2011?
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e. Do you predict that the higher prices of peanuts and peanut butter will persist or will they return to normal after one year?
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f. Why did the percentage rise in the price of peanuts exceed the percentage rise in the price of peanut butter?
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