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A and B Are Substitute Goods, but a and C

Question 57

Multiple Choice

A and B are substitute goods, but A and C are complementary goods (in consumption) .If the costs of production of A decrease, then the demand for:


A) both B and C will decrease.
B) both B and C will increase.
C) B will increase and the demand for C will decrease.
D) B will decrease and the demand for C will increase.

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