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ivann1987 [24]
3 years ago
5

The price of bread goes up. What happens to DEMAND for butter?

Business
1 answer:
nikklg [1K]3 years ago
3 0

Answer:

A. The demand curve shifts to the left

Explanation:

Bread and butter are compliment goods. They offer the consumer a high utility when consumed together. An increase in demand for bread will increase the demand for butter.  Changes in the price of bread will affect the demand for butter.

An increase in the price of bread leads to a decrease in demand. Reduction in bread demand means that butter consumption will decline as there will be less bread to apply butter. A decrease in demand will prompt the demand curve to shift inwards.

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