If goods A and B are substitute goods, then an increase in the price of B, other things being equal,

A. decreases the quantity demanded of B, but has no effect on the amount of A consumed.
B. has no real effect on the quantity demanded of good B, but increases the demand for A.
C. results in a decrease in the amounts of both A and B consumed.
D. results in a decrease in the quantity of B consumed, but increases the demand for A.


Answer: D

Economics

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