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In a Competitive Market,if One Firm Raises Its Price Relative

Question 51

Multiple Choice

In a competitive market,if one firm raises its price relative to the other firms in the market,consumers are willing to go to another firm because


A) the products are similar,which makes them complements.
B) the products are similar,which makes them substitutes.
C) there are many sellers in the market selling different items.
D) consumers can get more producer surplus by going to a different firm.
E) consumers can set the price they want to pay.

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