Suppose Product X Is an Input in the Production of Product

question 98

Multiple Choice

Suppose product X is an input in the production of product Y. Product Y in turn is a substitute for product Z. An increase in the price of X can be expected to

• A) decrease the demand for Z.
• B) increase the demand for Z.
• C) have no effect on the demand for Z.
• D) decrease the supply of Z.

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