A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2024 · Q101 Mark
Butter is a normal good. It is in joint demand with bread and in joint supply with buttermilk. The demand for butter increases because of a rise in consumer incomes. What are the effects of this increase on the prices of bread and buttermilk?
Aprice of bread decreases, price of buttermilk decreases
Bprice of bread decreases, price of buttermilk increases
Cprice of bread increases, price of buttermilk decreases
Dprice of bread increases, price of buttermilk increases
✓ Correct answer
C: price of bread increases, price of buttermilk decreases
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