Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:
A. the equilibrium price will fall and the equilibrium quantity will fall.
B. both the equilibrium price and quantity will rise.
C. the equilibrium price will rise and the equilibrium quantity will decrease.
D. the equilibrium price will rise, while the change to equilibrium quantity is indeterminate.
Answer:B
Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:
A. the equilibrium price will fall and the equilibrium quantity will fall. B. both the equilibrium price and quantity will rise. C. the equilibrium price will rise and the equilibrium quantity will decrease. D. the equilibrium price will rise, while the change to equilibrium quantity is indeterminate.
Explanation: 21. The supply curve of textbooks (which are produced using paper made from trees) will shift to the left in response to: