Figure 3-5 in Figure 3-5, If the Initial Demand

question 74

Multiple Choice

Figure 3-5 In Figure 3-5, if the initial demand for margarine were D₁, an increase in the price of butter, which is a substitute for margarine, would tend to cause which of the following changes in the market for margarine?

• A) a shift in the demand curve from D₁ to D₂
• B) a shift in the demand curve from D₂ to D₁
• C) a movement along demand curve D₁ from a to b
• D) a movement along demand curve D₁ from b to a

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings as decided by the board of directors.

Fair Value Method

An accounting approach wherein assets and liabilities are priced at their current market value to provide a more accurate valuation on financial statements.

Stock Investments

Investments in shares of public companies, aiming to generate income through dividends or capital gains.

Consolidation

Consolidation is the process of combining the financial statements of several subsidiaries or companies into the combined financial statements of the parent company to present as a single economic entity.