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If the Demand for Good a Is More Elastic Than

Question 135

Multiple Choice

If the demand for good A is more elastic than the demand for good B,a small decrease in supply in both markets will cause


A) a much greater increase in price for good A than for good B
B) a much greater increase in price for good B than for good A
C) the price will increase by the same amount in both markets
D) only the price of good B will increase
E) only the price of good A will increase

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