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If the Price of Potato Chips Falls, the Substitution Effect

Question 46

Multiple Choice

If the price of potato chips falls, the substitution effect due to the price change will cause


A) an increase in the demand for potato chips.
B) an increase in the demand for corn chips, a substitute for potato chips.
C) an increase in the quantity of potato chips demanded.
D) a decrease in the quantity of potato chips demanded.

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