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A New Fad Dramatically Increases the Demand for Donut-Holes, the Leftovers

Question 15

Multiple Choice

A new fad dramatically increases the demand for donut-holes, the leftovers produced from donut production.According to economic theory one would expect


A) The price of donuts to rise
B) The price of donuts to fall
C) The price of donuts to stay the same
D) That one cannot tell

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