The management of firm A observed that every time there is an increase in the price charged by firm B, the level of sales of firm A declines. But…
CA Foundation · Business Economics · MTP · January 2025
The management of firm A observed that every time there is an increase in the price charged by firm B, the level of sales of firm A declines. But when firm C increases its price, the level of sales of firm A increases. From this we can conclude that:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. firms A and C produce substitutes in consumption.
Topics: Price Determination in Different Markets
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