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Demand for good B will increase. If the price for a good increases and there is a similar good on the market, then that similar good will increase in demand. People will buy the cheaper option of something if it is available. This is called "Substitution".

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Q: If producer can use resources to produce either good A or good B then increase in price of A will cause what to happen to the supply of A and B?
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...or 8 automobiles. If the material is the same amount; the product will be the same amount. The ONLY difference will be quality (not quantity). Japan is forced to build better machines because being an "island" and "depending" upon imports they will starve "if" their products don't sell. The US does NOT depend upon imports (physically; it has the land to survive, but not the financial interest to produce it's own material) and could survive on it's own with or without foreign business.


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Related questions

What does produce mean in science?

Producer means organisms that keep building


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