What Effect Would a Reduction in the Canadian Selling Price

question 92

Multiple Choice

What effect would a reduction in the Canadian selling price of Japanese made cars have on the Canadian demand for Canadian made cars?

• A)The demand would increase.
• B)The demand would decrease.
• C)No effect, because price changes affect quantity demanded, not demand.
• D)We cannot tell unless we know what happened to the price of Canadian made cars.

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