0:00
Hello.
00:02
It's given that peanut butter and jelly are complementary goods.
00:07
And if the price of peanut butter goes up.
00:16
So what can be expected? let's look to the market of peanut butter.
00:24
This is the market of peanut.
00:28
And this is the demand for peanut butter.
00:34
Here we have price here we have quantity and it's given that the price for pittin butter goes up it was somewhere here and now price is here so as we can see we move along the same demand curve there is no change in demand quantity will decrease because of this increase in the price.
01:13
So basically buyers peanut butter and jelly they will move upward and to the left along the demand curve for peanut butter.
01:28
So upward and to the left.
01:29
So upward and to the left because it's an increase in the price.
01:41
Now let's look what will happen in the price for jelly.
01:50
This is the market for jelly.
01:53
We have demand and we also have supply for jelly.
02:00
This is supply of jelly.
02:03
And since there is an increase in the price for peanut butter, the quantity demanded of peanut butter will decrease.
02:14
And since consumers consume less peanut butter, they will also consume less peanut butter.
02:20
They will also consume less jelly.
02:24
So the demand for jelly will decrease.
02:29
The demand curve of jelly will shift to the left.
02:35
We have a decrease in demand for jelly...