In the market for bottled water if the price of soda, which is a substitute in consumption to bottled water, decreases and the government decreases taxes for bottled water, then the equilibrium price [Select] and the quantity ✓ [Select] decreases increases

In the market for bottled water if the price of soda, which is a substitute in consumption to bottled water, decreases and the government decreases taxes for bottled water, then the equilibrium price [Select] and the quantity ✓ [Select] decreases increases

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In the market for bottled water if the price of soda, which is a substitute in consumption to bottled
water, decreases and the government decreases taxes for bottled water, then the equilibrium price
[Select]
and the quantity
[Select]
decreases
increases
may increase, decrease or remain unchanged

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