Plastic and Steel Are Substitutes in the Production of Body

question 16

Multiple Choice

Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, with other things remaining the same, we would expect:

• A) the price of steel to fall.
• B) the demand curve for steel to shift to the right.
• C) the demand curve for plastic to shift to the left.
• D) nothing to happen to steel because it is only a substitute for plastic.
• E) the demand curve for steel to shift to the left.

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