8. Shifts in supply or demand I The following graph shows the market for peanut butter in New York City, where there are over 1,000 stores that sell peanut butter at any given moment. Suppose the price of jelly decreases. (Assume that people regard peanut butter and jelly as complements.) Show the effect of this change on the market for peanut butter by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand Supply PRICE (Dollars per jar) D2 D QUANTITY (Jars) Now suppose Congress passes a tax cut that increases the income of New York City residents. If peanut butter is a normal good, this will cause the demand for peanut butter to increase Grade It Now Save & Continue