The rise in the price of butter will lead to:
A)a fall in the demand curve for butter.
B)a rightward shift in the demand curve for butter's substitute.
C)a leftward shift in the demand curve for butter's substitute.
D)an increase in the marginal utility of the last unit consumed of butter's substitute.
E)none of the above.

Question

Quizplus · Accepted Answer

When the price of butter rises, consumers may switch to its substitutes, leading to an increase in demand for the substitute, which is represented by a rightward shift in its demand curve.

The Rise in the Price of Butter Will Lead To