Author Question: If butter is a substitute for margarine, then an increase in the price of butter would be most ... (Read 115 times)

genevieve1028 · **on:** Jun 30, 2018

If butter is a substitute for margarine, then an increase in the price of butter would be most likely to cause:
a. a rightward shift of demand for margarine.
b. a leftward shift of demand for margarine.
c. the quantity demanded for margarine to increase.
d. the quantity demanded for margarine to decline.
e. a decline in the price of margarine.

Question 2

Two goods are considered substitutes only if a(n):
a. decrease in the demand for one leads to a decrease in the supply of the other.
b. increase in the demand for one leads to a decrease in the supply of the other.
c. increase in the price of one leads to an increase in the demand for the other.
d. decrease in the price of one leads to an increase in the demand for the other.
e. decrease in the supply of one leads producers to switch to production of the other.