Use the figure below to answer the following questions.
Figure 3.5.1
-Initially,the demand curve for good A is D2 in Figure 3.5.1.Suppose good B is a substitute for good A.If the price of B falls
A) the price of A will rise.
B) there will be a surplus of good A at P2.
C) the demand curve for good A will shift from D2 to D3.
D) the equilibrium quantity of good A will increase.
E) all of the above are true except B.
Correct Answer:
Verified
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Q90: Use the figure below to answer the
Q90: A shortage will exist if
A)the price is
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