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Suppose That the Price of Doughnuts Decreases and That Doughnut-Holes

Question 67

Multiple Choice

Suppose that the price of doughnuts decreases and that doughnut-holes are a by-product of producing doughnuts. One would expect:


A) the supply of doughnuts to decrease.
B) the quantity supplied of doughnuts to decrease.
C) the supply of doughnut-holes to increase.
D) the quantity supplied of doughnut-holes to increase.

Correct Answer:

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