Asked by
Filip Sundqvist
on Dec 11, 2024Verified
How will consumers generally react to an increase in the price of butter?
A) They will purchase a larger quantity of butter.
B) They will substitute other goods like margarine for the more expensive butter.
C) They will reduce their purchases of substitute goods like margarine.
D) They will continue purchasing the same quantity of butter at the higher price.
Substitute Goods
Products or services that can be used in place of one another, with their demand being inversely related: as the price of one rises, the demand for the other increases.
Margarine
A butter substitute made from vegetable oils or animal fats, often used in cooking or as a spread.
- Acquire insight into how alterations in prices influence consumer actions.
Verified Answer
UF
Learning Objectives
- Acquire insight into how alterations in prices influence consumer actions.
Related questions
Consumers Buy Less of a Good as Its Price Increases ...
Economists Would Say That the Demand for Tacos Is ...
Which of These Statements Regarding Price Changes Is Most Accurate ...
Assume Electric Water Heaters and Gas Water Heaters Are Interchangeable,and ...
We Derive the Demand Curve for X from Indifference Curves ...