The Management of Firm a Observed That Every Time There

Multiple Choice

The management of firm A observed that every time there is an increase in the price charged by firm B, the level of sales of firm A declines. But when firm C increases its price, the level of sales of firm A increases. From this we can conclude that

A) firms A and B produce substitutes in consumption.
B) firms A and C produce substitutes in consumption.
C) firms A and B produce unrelated in consumption products.
D) firms A and C produce unrelated in consumption products.
E) None of the above is correct.