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A Rise in the Price of a Substitute in Production

Question 235

Multiple Choice

A rise in the price of a substitute in production for a good leads to


A) an increase in the supply of that good.
B) a decrease in the supply of that good.
C) no change in the supply of that good; instead there is a change in the quantity supplied.
D) a decrease in the quantity of that good supplied.
E) no change in either the supply or the quantity supplied of the good.

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