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Equilibrium price and quantity of butter

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Question 3:What will happen to the equilibrium price and quantity of butter in each of the following cases?Illustrate with a diagram and explain whether demand or supply (or both) have shifted and in whichdirection? (In each case, assume ceteris paribus).(a) A rise in the price of margarine; (1 mark)(b) A rise in the demand for yoghurt; (1 mark)(c) A rise in the price of bread; (1 mark)(d) An increase in the demand for bread; (1 mark)(e) An expected rise in the price of butter in the near future; (1 mark)(f) An tax on butter production; (2.5 marks)(g) The invention of new but expensive process, for removing all cholesterol from butter, plusthe passing of a law which states that all butter producers must use this process. (2.5 marks)

Reference no: EM13936661

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