Suppose Butter and Margarine Are Used as Substitutes

question 78

Multiple Choice

Suppose butter and margarine are used as substitutes. Assuming that the supply of butter is constant, an increase in the price of margarine will:

• A) decrease the equilibrium quantity of butter.
• B) increase the equilibrium price of butter.
• C) shift the demand curve for butter to the left.
• D) shift the demand curve for margarine to the right.

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Definitions:

Productivity

A measure of the efficiency of production, often calculated as the ratio of outputs to inputs in a given time period.

Productivity Growth

An increase in the efficiency of production in an economy, typically measured by the output of goods and services per unit of input, such as labor or capital, over time.

Computerization

Computerization involves the use of computers and software to perform tasks, manage data, and automate processes in various fields and industries.

Productivity Growth

An increase in the efficiency of production, leading to a greater output of goods and services without an increase in input.