If the price of butter increases, the demand for margarine
A) will be unchanged.
B) will shift outward.
C) will shift inward.
D) will kink into an S-curve.
Answer: B
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Which of the following best describes the substitution effect caused by a price increase?
a. A change in consumption due to the fact that you will not buy goods whose marginal value is below the new price. b. A change in consumption due to the fact that you cannot afford your original market basket. c. A smaller percentage change in quantity than in price. d. A larger percentage change in quantity than in price.
The graph below represents the market for alfalfa. The equilibrium price is $7.00 per bushel, but the market price is $9.00 per bushel
Identify the areas representing consumer surplus, producer surplus, and deadweight loss at the equilibrium price of $7.00 and at the market price of $9.00.
The quantity demanded in a market is only large enough for one firm to operate at the minimum of the long-run average cost curve. Which of the following will result in this situation?
a. Natural monopoly b. Oligopoly c. Duopoly d. Cartel
The Chinese government has prohibited anyone in China from dealing with bitcoin exchanges
Indicate whether the statement is true or false