Essay
Which of the following statements is true? The substitution effect of an increase in the price of tea refers to the
(A)decrease in the quantity demanded of tea and the increase in the demand for its substitutes,such as coffee.
(B)decrease in the quantity demanded of both tea and its substitutes,such as coffee.
(C)increase in the quantity demanded of tea and the decrease in the quantity demanded for its substitutes,such as coffee.
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Correct Answer:
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