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Assuming That Chinese Food and Thai Food Are Substitutes, Which

Question 21

Multiple Choice

Assuming that Chinese food and Thai food are substitutes, which of the following will result if P. F. Chang's Chinese Restaurant reduces its prices?


A) The demand for meals at P. F. Chang's will increase.
B) The demand for meals at the Bah Thai restaurant will decrease.
C) The sales of the nearby Bah Thai restaurant will increase.
D) The quantity of food demanded from P. F. Chang's will decrease.

Correct Answer:

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