If the price of butter increases, the demand for margarine
A) will be unchanged.
B) will shift outward.
C) will shift inward.
D) will kink into an S-curve.

Question

Quizplus · Accepted Answer

When the price of butter increases, consumers will look for substitutes, leading to an increase in the demand for margarine, which is a close substitute. This is represented by a shift outward in the demand curve for margarine.

If the Price of Butter Increases, the Demand for Margarine