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Rice and Potatoes Are Substitutes in Consumption

Question 289

Multiple Choice

Rice and potatoes are substitutes in consumption. If the price of rice rises and there is a bumper crop of potatoes, in the market for potatoes one would expect the equilibrium price to _____ and the equilibrium quantity to _____.


A) rise, fall, or stay the same; rise
B) rise; fall
C) fall; fall
D) rise; fall, rise, or stay the same

Correct Answer:

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