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Commerce · Q322

Economics

Graduate and Post Graduate · Commerce · question 322

Q322

If the price of good A increases relative to the price of substitutes B and C, the demand for

A.
B will increase
B.
C will increase
C.
Both B and C will increase
Answer
D.
B and C will decrease

Answer: Option C

Solution

Answer: Option C
Solution:
If the price of good A increases relative to the price of substitutes B and C, the demand for Both B and C will increase.