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Goods X and Y are substitute goods. If the demand for good X increases, the price of good X will _ _ _ _ _

Goods X and Y are substitute goods. If the demand for good X increases, the price of good X will _____ and cause a(n) _____ in the demand for good Y. The _____ price for good Y will further _____ the demand for good X, while the _____ price for good X will further _____ the demand for good Y.

Question 20Answer

a.

increase; increase; higher; increase; higher; increase

b.

increase; increase; lower; decrease; lower; decrease

c.

increase; increase; lower; increase; higher; increase

d.

decrease; decrease; lower; decrease; lower; decrease

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