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How Will an Increase in the Price of Coffee Affect

Question 187

Multiple Choice

How will an increase in the price of coffee affect the market for cocoa, a substitute good?


A) The supply of cocoa will increase, leading to a reduction in the price of cocoa.
B) The supply of cocoa will decrease, leading to an increase in the price of cocoa.
C) The demand for cocoa will increase, leading to an increase in the price of cocoa.
D) The demand for cocoa will decrease, leading to a reduction in the price of cocoa.

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