If the Price of Orchids Falls, the Substitution Effect Due

question 74

Multiple Choice

If the price of orchids falls, the substitution effect due to the price change will cause

• A) an increase in the demand for orchids.
• B) an increase in the demand for roses, a substitute for orchids.
• C) an increase in the quantity demanded of orchids.
• D) an increase in the quantity supplied of orchids.

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Definitions:

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