An increase in the price of Limca may reduce the supply of cake . – InterviewSolution

1.	An increase in the price of Limca may reduce the supply of cake .
Answer» True: Increase in prices of Limca (other good of the same producer) will make its production more profitable in comparison to Coke ( given Commodity). It will lead to fall in supply of coke as coke and limca are substitute goods.

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