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Assume That Butter Is a Substitute for Margarine

Question 107

Multiple Choice

Assume that butter is a substitute for margarine. What would be the result in a drop in the price of margarine?


A) The price of butter rises and the quantity of butter falls.
B) The price of butter falls and the quantity of butter rises.
C) Both the price of butter and the quantity of butter rise.
D) Both the price of butter and quantity of butter fall.

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