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2) Do you agree or disagree with each of the following statements? Briefly explain your answers. a) The price of a good rises, causing the
2) Do you agree or disagree with each of the following statements? Briefly explain your answers. a) The price of a good rises, causing the demand for another good to fall. The two goods are therefore substitutes. (2 point) I b) During 2003, incomes rose sharply for most Americans. This change would likely lead to an increase in the prices of both normal and inferior goods. (2 points) c) The price of good A falls. This causes an increase in the price of good B. Goods A and B are therefore complements. (2 point)
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