If Butter Is a Substitute for Margarine, Then an Increase

question 393

Multiple Choice

If butter is a substitute for margarine, then an increase in the price of butter would be most likely to cause:

• A) a rightward shift of demand for margarine.
• B) a leftward shift of demand for margarine.
• C) the quantity demanded for margarine to increase.
• D) the quantity demanded for margarine to decline.
• E) a decline in the price of margarine.

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Definitions:

Provincial Personal Property

Property, excluding real estate, owned by individuals or entities within a specific province.

Automobile

A self-propelled vehicular machine designed primarily for transportation of people or goods over roads.

Loan

Money, property or other material goods given to another party in exchange for future repayment of the loan value or principal amount, along with interest or finance charges.

Chattel Mortgage

A loan arrangement in which an item of movable personal property acts as collateral for the loan.