Use the figure below to answer the following question(s).
Figure 3-13
-Refer to Figure 3-13. The market for margarine was initially in equilibrium at point
A) r.
B) s.
C) t.
D) u.
E) Other things constant, a decrease in the price of butter, a close substitute for margarine, would likely move the equilibrium in this market toward point

Question

Use the figure below to answer the following question(s).
Figure 3-13 
-Refer to Figure 3-13. The market for margarine was initially in equilibrium at point
A) r. 
B) s. 
C) t. 
D) u. 
E) Other things constant, a decrease in the price of butter, a close substitute for margarine, would likely move the equilibrium in this market toward point

Quizplus · Accepted Answer

The initial equilibrium is at point A, where the supply and demand curves intersect. A decrease in the price of butter, a close substitute for margarine, would make margarine relatively more expensive, causing the demand for margarine to decrease and the equilibrium to move to the left, toward point A.

Use the Figure Below to Answer the Following Question(s)