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Question
The substitution effect shows that
A) if the price of a good increases, consumers buy more of that good and less of all others.
B) if the price of a good falls relative to all other goods, consumers buy less of that good and more of all others.
C) if the price of a good falls, consumers buy less of all goods.
D) if the price of a good rises, consumers buy less of that good and more of others.
Answer
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