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Determinants of Supply - Substitute and Price by cassrynne on 07-15-2008
If the price of the other good rises, the supply of the good in question will fall.
Have you heard? Coca-cola will raise the price of its regular coke.
I see. Does that mean they will also increase the price of diet coke?
As the price of the product rises (falls), the quantity supplied will rise (fall).
Not really. But they will probably produce less of Diet Coke and more of regular Coke.
So, you mean that if the price of the product rises, then the quantity supplied will rise, too?
Yes, that's right!
I see.
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