asked 20.6k views
5 votes
Each of the following will increase demand for butter EXCEPT:

a. increase in the price for margarine
b. scientific study that shows butter is good for a person's health
c. increase in the number of people that are unemployed
d. increase in the population that may increase people buying butter

1 Answer

2 votes

Final answer:

Option (c), an increase in the number of people that are unemployed, is the factor that will NOT increase demand for butter, as it usually leads to lower income and reduced purchasing power.

Step-by-step explanation:

The question is seeking to identify which factor will NOT increase the demand for butter. Out of the options given:

  • Option (a), an increase in the price for margarine, would likely cause consumers to substitute butter for the now more expensive margarine, increasing the demand for butter.
  • Option (b), a scientific study that shows butter is good for a person's health, will likely increase the demand due to the positive perception of health benefits associated with butter consumption.
  • Option (c), an increase in the number of people that are unemployed, will likely not increase the demand for butter, as unemployment often leads to a decrease in income and purchasing power, negatively affecting demand.
  • Option (d), an increase in the population, would generally lead to an increase in demand for goods, including butter, if more people need to buy it.

Therefore, the correct answer is option (c), as increased unemployment typically reduces the overall demand for goods due to lower consumer income.

answered
User SharkLaser
by
8.2k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.