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Assume Two Goods Are Substitutes

Question 75

Multiple Choice

Assume two goods are substitutes.Ceteris paribus,a decrease in the price of one good will cause the equilibrium price of the other good to


A) Increase and the equilibrium quantity of the other good to increase.
B) Increase and the equilibrium quantity of the other good to decrease.
C) Decrease and the equilibrium quantity of the other good to increase.
D) Decrease and the equilibrium quantity of the other good to decrease.

Correct Answer:

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