An Increase in the Price of Butter, a Substitute Good

question 86

Multiple Choice

An increase in the price of butter, a substitute good, would be most likely to cause

• A)a rightward shift of the demand curve for margarine
• B)a leftward shift of the demand curve for margarine
• C)the quantity of margarine demanded to increase
• D)the quantity of margarine demanded to decrease
• E)a decrease in the price of margarine

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Definitions:

Sample Size

This term refers to the number of observations or replicates used in a statistical analysis.

Central Limit Theorem

A statistical theory stating that the distribution of sample means approximates a normal distribution as the sample size becomes large, regardless of the population's distribution.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, essential in estimating the sampling variability.

Sample Mean

The average value of a sample, used as an estimate of the population mean.