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Suppose That Goods X and Y Are Substitutes and the Price

Question 52

Multiple Choice

Suppose that goods X and Y are substitutes and the price of good Y falls.We would then expect


A) a decrease in the demand for good X and an increase in the quantity of good Y demanded.
B) an increase in the demand for good Y and a decrease in the demand for good X.
C) the quantity demanded of good Y to increase and the demand for good X to increase also.
D) an increase in demand for both good X and good Y.

Correct Answer:

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