Peanut crops have been destroyed by fungus. Consumers are substituting almond butter for peanut butter because they perceive it to be a healthier option. The prices of both peanut butter and almond butter are rising. Why?
Given what you have learned about 1)
Peanut crops have been destroyed by fungus. Consumers are substituting almond butter for peanut butter because they perceive it to be a healthier option. The prices of both peanut butter and almond butter are rising. Why?
Since peanuts were destroyed by fungus this will lead to a decrease in the supply of peanuts used to make peanut butter. A decrease in supply will lead to an increase in the
Almond butter is being used as a substitute for peanut butter because it is healthier. This will increase demand which will increase the price.
Am I in the right ballpark here as to why both prices increased?
A graph will really help me grasp how to solve this.
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