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If the Demand for Used Cars Decreases After the Price

Question 96

Multiple Choice

If the demand for used cars decreases after the price of a new car falls,used cars and new cars are


A) inferior goods.
B) substitute goods.
C) complementary goods.
D) normal goods.
E) The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls.

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