What happens to the demand for butter if the price of margarine increases?An increase in the price of margarine. Butter and margarine are substitute goods for most people. Therefore, an increase in the price of margarine will cause people to increase their consumption of butter, thereby shifting the demand curve for butter out from D1 to D2 in Figure 2.2.
What happens when the price of margarine increases quizlet?Margarine is a substitute to butter therefore, an increase in the price of Margarine will increase the demand for butter.
Which of the following will happen if the price of butter goes up?Which of the following will happen if the price of butter goes up? -The demand for butter increases.
How will consumers generally react to an increase in the price of butter?How will consumers generally react to an increase in the price of butter? They will substitute other goods like margarine for the more expensive butter. A new hormone will increase the amount of milk each cow produces.
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