A supermarket cuts the price of margarine. Its customers commonly choose either butter or margarine as a spread, and the price of butter is unchanged.
Which outcome is most likely in these markets?
There is a movement down the demand curve for butter to a larger quantity
At each price of butter, a larger quantity of butter is demanded
At each price of butter, a smaller quantity of butter is demanded
There is a movement up the demand curve for margarine to a smaller quantity
82 exam-style questions on OCR GCSE Economics 2.2 Demand, covering 2.2.1 What is demand, 2.2.2 Draw a demand curve using data, 2.2.3 Explain a demand curve, 2.2.4 Shifts and movements of the demand curve, 2.2.5 Causes and consequences of demand changes, 2.2.6 Price elasticity of demand, 2.2.7 Draw demand curves of different elasticity, and 2.2.8 Importance of price elasticity of demand. Each one has a worked solution and a mark scheme showing where the marks go.