Use the Figure Below to Answer the Following Question(s)

question 491

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 3-3

In Figure 3-3, if the initial demand for margarine were D ₁, the impact of a decrease in the price of butter, a substitute good for margarine, would be illustrated as

• A) a shift in the demand curve to D ₂.
• B) a shift in the demand curve to D ₃.
• C) a movement downward to the right along the original demand curve D ₁.
• D) none of the above.

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Definitions:

Secured Transaction

A collateral right to debt giving the creditor the right to take back the goods or intercept the debt owing used as security in the event of default.

Division I Proposal

An alternative to bankruptcy, created by the Bankruptcy and Insolvency Act, whereby the debtor secures some time to reorganize his affairs and make a proposal for partial payment that will satisfy his creditors; if the creditors reject the proposal, the insolvent debtor is deemed to have made an assignment in bankruptcy from the day of the meeting of the creditors, and the normal bankruptcy procedures follow.

Consumer Debtors

Individuals or entities that owe money for personal, as opposed to business, expenses.

Chose In Action

The thing or benefit that is transferred in an assignment; intangible personal property, such as a claim or the right to sue.