The Rise in the Price of Butter Will Lead To

question 27

Multiple Choice

The rise in the price of butter will lead to:

• A)a fall in the demand curve for butter.
• B)a rightward shift in the demand curve for butter's substitute.
• C)a leftward shift in the demand curve for butter's substitute.
• D)an increase in the marginal utility of the last unit consumed of butter's substitute.
• E)none of the above.

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Definitions:

Newspaper Printing

The process of mass-producing copies of a newspaper document, whereby the news and other data are printed onto papers.

Economies of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit decreases as the scale of production rises.

Inputs

Resources such as labor, materials, and capital used in the production process to create goods and services.

Output

The total amount of goods or services produced by a person, machine, company, or industry.