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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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