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Suppose That Goods a and B Are Close Substitutes

Question 251

Multiple Choice

Suppose that goods A and B are close substitutes. If the price of good A falls, then we would expect an


A) increase in the demand for A and an increase in the quantity of B demanded.
B) increase in the demand for A and a decrease in the quantity of B demanded.
C) increase in the quantity of A demanded and a decrease in the demand for B.
D) increase in the demand for good A as well as for good B.

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