If resources R1 and R2 are substitutable, the decrease in price of R1 will Select one: Increase the demand for R2 Increase the demand for R2 if the substitution effect exceeds the output effect None of the answers are correct Increase the demand for R2 if the output effect exceeds the substitution effect Decrease the demand for R2
If resources R1 and R2 are substitutable, the decrease in price of R1 will Select one: Increase the demand for R2 Increase the demand for R2 if the substitution effect exceeds the output effect None of the answers are correct Increase the demand for R2 if the output effect exceeds the substitution effect Decrease the demand for R2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
If resources R1 and R2 are substitutable, the decrease in
Select one:
- Increase the
demand for R2 - Increase the demand for R2 if the substitution effect exceeds the output effect
- None of the answers are correct
- Increase the demand for R2 if the output effect exceeds the substitution effect
- Decrease the demand for R2
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