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Goods A and B are substitutes and each belongs to a perfectly competitive industry. If supply of A decreases due to an increase in the

Goods A and B are substitutes and each belongs to a perfectly competitive industry. If supply of A decreases due to an increase in the price of its inputs, in the short run we would expect existing firms in B industry to:

A. increase their price

. B. experience a decrease in their profits.

C. face more demand.

D. attract less firms into the industry.

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