Show graphically the effects of an increase in price of peanut butter on the dema?

Answer 1

I'm not sure how to show it graphically via Yahoo Answers, but basically, assuming that the demand is fairly elastic, I would place unit demand, or quantity, on the X-axis and price on the Y-axis, with a downward sloping demand curve. The end result would look a little like a triangle with two ends hanging off, (with the ends being the outer ends of each axis) that is, if my thinking is correct.

Here's a quick animation I drew up to show the graph. Hope this helps.
http://artpad.art.com/?jdwogub5pq8