Consider Butter and Margarine,which Are Substitutes

question 118

Multiple Choice

Consider butter and margarine,which are substitutes.When the price of butter falls,the demand curve for margarine is likely to

• A)shift to the right.
• B)shift to the left.
• C)remain stationary.
• D)remain stationary,although its price will fall.
• E)remain stationary,although its price will rise.

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Definitions:

Convex

In geometry and economics, convex refers to a shape or function that curves outward or has a bulging shape, often indicating a relationship where marginal effects increase over a range.

Concave

Describes a curve or surface that is curved inward, resembling the interior of a circle or sphere.

Budget Line

The budget line represents the combination of goods and services that a consumer can purchase with their given income, keeping in consideration the prices of those goods.

Money Income

Money income refers to the total amount of monetary earnings received by an individual or household, including wages, salaries, bonuses, and income from investments.