What will happen to equilibrium price and quantity of butter

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Reference no: EM13994771

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 and supply (or both) have shifted and in which direction? (In each case, assume ceteris paribus)

a. A rise in the price of margarine;

b .A rise in the price of yoghurt;

c .A rise in the price of bread;

d. An increase in the demand for bread;

e. An expected rise in the price of butter in the near future;

f. An tax on butter production;

g. An invention of a new but expensive process, for removing all cholesterol from butter plus the passing of a law which states that all butter producer must use this process.

Reference no: EM13994771

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