Butter and margarine are consumption substitutes. The supply of margarine increases. This should A. increase the demand for butter. B. increase the demand for margarine. C. raise the price of butter. D. lower the price of butter.

Butter and margarine are consumption substitutes. The supply of margarine increases. This should A. increase the demand for butter. B. increase the demand for margarine. C. raise the price of butter. D. lower the price of butter.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 10P

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Question

Butter and margarine are consumption substitutes. The supply of margarine increases. This should

A. increase the demand for butter.

B. increase the demand for margarine.

C. raise the price of butter.

D. lower the price of butter.

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