Question:

Can you please check whether or not my answer is correct? If not, can you please correct it?

Scenario:
The market for peanut butter in New York where over 1 million stores that sell peanut butter at any given amount. Suppose the price of bread increases (Assume that people regard peanut butter and bread as complements). If this scenario is to be graphed, would the supply curve and/or demand curve shift to the left or right?

My answer:
Only the demand curve shifts to the left. The supply curve is not affected because it deals with complements.

correct.

To determine whether your answer is correct or not, we need to understand the relationship between two products (peanut butter and bread) and how a change in the price of one affects the demand and supply of the other.

In this scenario, peanut butter and bread are regarded as complements, meaning they are typically consumed together. When the price of bread increases, it usually leads to a decrease in the demand for peanut butter.

To graphically represent this scenario, we can analyze the demand and supply curves for peanut butter:

1. Demand Curve: The demand curve represents the relationship between the price of peanut butter and the quantity demanded by consumers. Since an increase in the price of bread decreases the demand for peanut butter (as they are complements), the demand curve will indeed shift to the left. This means that at any given price level, consumers will demand a lower quantity of peanut butter.

2. Supply Curve: The supply curve represents the relationship between the price of peanut butter and the quantity supplied by producers. In this scenario, the price of bread is not directly affecting the supply of peanut butter. Therefore, the supply curve remains unchanged.

Based on this analysis, your answer stating that only the demand curve shifts to the left is correct.

To summarize, when the price of bread increases, the demand curve for peanut butter will shift to the left, indicating a decrease in the quantity demanded. However, the supply curve for peanut butter remains unaffected as it is not directly related to the price of bread.