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Naren Buys Gallons of Both Milk and Orange Juice

Question 114

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Naren buys gallons of both milk and orange juice. Whenever the grocery store lowers the price of milk, he purchases more gallons of milk and fewer gallons of orange juice. All else equal, does Naren consider milk and orange juice to be substitutes in consumption, complements in consumption, or unrelated goods? Explain.

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Naren considers these goods to be substi...

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