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If a and B Are Substitutes and the Cost of a Factor

Question 149

Multiple Choice

If A and B are substitutes and the cost of a factor of production used in the production of A increases,then the price of


A) B falls,but the price of A rises.
B) B rises,but the price of A falls.
C) A falls,and the price of B will stay unchanged.
D) A and B fall.
E) A and B rise.

Correct Answer:

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