Economics (AS & A Level) · Feb / March 2024 · Paper 12 · Question 10

Butter is a normal good. It is in joint demand with bread and in joint supply with buttermilk. The demand for butter increases because of a rise in consumer incomes. What are the effects of this increase on the prices of bread and buttermilk?

1. Aprice of bread decreases; price of buttermilk decreases
2. Bprice of bread decreases; price of buttermilk increases
3. Cprice of bread increases; price of buttermilk decreases
4. Dprice of bread increases; price of buttermilk increases

As printed in the paper