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If Products C and D Are Close Substitutes, an Increase

Question 49

Multiple Choice

If products C and D are close substitutes, an increase in the price of C will


A) tend to cause the price of D to fall.
B) shift the demand curve for C to the left and the demand curve for D to the right.
C) shift the demand curve for D to the right.
D) shift the demand curves of both products to the right.

Correct Answer:

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