When a surplus exists in a market, sellers Show a. raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. What happens to the demand for butter if the price of margarine increases?An increase in the price of margarine. Butter and margarine are substitute goods for most people. Therefore, an increase in the price of margarine will cause people to increase their consumption of butter, thereby shifting the demand curve for butter out from D1 to D2 in Figure 2.2.
What happens to the demand for a good if a complements price increases group of answer choices?The demand for a good decreases, if the price of one of its complements rises. The demand for a normal good increases if income increases.
Will cause the demand curve for butter to shift to the right?An increase in the price of one will increase the demand for the other. For example, an increase in the price of butter reduces the quantity demanded of butter and increases the demand for margarine. The demand curve for margarine would then shift to the right.
What is an increase in quantity demanded?An increase in quantity demanded is caused by a decrease in the price of the product (and vice versa). A demand curve illustrates the quantity demanded and any price offered on the market. A change in quantity demanded is represented as a movement along a demand curve.
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If toast and butter are complements, then which of the following would increase the demand for toast
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