Figure 3-5

-In Figure 3-5,if the initial demand for margarine were D₁,an increase in the price of butter,which is a substitute for margarine,would tend to cause which of the following changes in the market for margarine?

Question

Figure 3-5
 
-In Figure 3-5,if the initial demand for margarine were D₁,an increase in the price of butter,which is a substitute for margarine,would tend to cause which of the following changes in the market for margarine?

Quizplus · Accepted Answer

An increase in the price of butter, a substitute for margarine, would increase the demand for margarine (as consumers switch to the less expensive good), causing a shift in the demand curve from D₁ to D₂.

Figure 3-5 -In Figure 3-5,if the Initial Demand for Margarine Were D₁,an