1. A substitute product is defined as a product that can be used for a similar purpose as the other product. The common example substitutes are butter and margarine. If the price of butter increases while that of margarine remain constant, use the demand curve to illustrate the effects of an increase in the price of butter to the demand for margarine.
1. A substitute product is defined as a product that can be used for a similar purpose as the other product. The common example substitutes are butter and margarine. If the price of butter increases while that of margarine remain constant, use the demand curve to illustrate the effects of an increase in the price of butter to the demand for margarine.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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1. A substitute product is defined as a product that can be used for a similar purpose as the
other product. The common example substitutes are butter and margarine. If the
butter increases while that of margarine remain constant, use the
illustrate the effects of an increase in the price of butter to the demand for margarine.
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