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Studying for my test: 1.Many cooks view butter and margarine to be substitutes.

ID: 1093377 • Letter: S

Question

Studying for my test:

1.Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:

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2.A more efficient means of processing algae to produce an anticancer drug is discovered. As a result, the supply curve for the drug will:

3.If labor demand is downward sloping and labor supply is upward sloping, then when labor demand rises faster than labor supply, it is expected that real wages __________.

a. the equilibrium price will fall and the equilibrium quantity will fall.

Explanation / Answer

.Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:

--

2.A more efficient means of processing algae to produce an anticancer drug is discovered. As a result, the supply curve for the drug will:

3.If labor demand is downward sloping and labor supply is upward sloping, then when labor demand rises faster than labor supply, it is expected that real wages __________.

a. the equilibrium price will fall and the equilibrium quantity will fall.