Consider Butter and Margarine, Which Are Substitutes

question 46

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

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Definitions:

Proved Reserves

Specific mineral deposits that have been shown by scientific examination and cost calculation to be extractable and deliverable to the market for use, with current technology and expected market conditions.

Mineral

A naturally occurring, inorganic solid with a definite chemical composition and crystalline structure, used in various industries.

Conservation

The sustainable management and use of natural resources to prevent depletion or degradation, safeguarding biodiversity and ecosystems.

Scarcer

Describes a condition where resources, goods, or services become less available or in shorter supply than previously.