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  3. Study Set
    Microeconomics Theory with Applications
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    Exam 3: Demand Theory
  5. Question
    If Good X<sub>1</sub><sub> </Sub>is a Substitute for Good X<sub>2</sub>, Then
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If Good X1 is a Substitute for Good X2, Then

Question 12

Question 12

Multiple Choice

If good x1 is a substitute for good x2, then an increase in the price of x2 causes the demand of x1 to:


A) be indeterminate.
B) increase.
C) decrease.
D) remain unchanged.

Correct Answer:

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