What will happen to the equilibrium price and quantity of butter in each of the following cases?
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What will happen to the equilibrium price and quantity of butter in each of the following cases? You should state whether demand or supply or both have shifted and in which direction:
(a) a rise in the price of margarine;
(b) a rise in the demand for yoghurt;
(c) a rise in the price of bread;
(d) a rise in the demand for bread;
(e) an expected increase in the price of butter in the near future;
(f) a tax on butter production; (g) the invention of a new, but expensive, process of removing all cholesterol from butter, plus the passing of a law which states that butter producers must use this process. In each case assume that other things remain the same.
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Related Book For
Essential Economics For Business
ISBN: 9781292728940
7th Edition
Authors: John Sloman, Elizabeth Jones
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