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Sales of a premium subscription rose right after its price was increased. Which of the following best explains this surprising result?
ACustomers dislike paying more
BA major competitor's comparable product was withdrawn from the market at the same time
CThe subscription was already popular
DThe company hired more staff
Answer & Solution
Correct answer: B. A major competitor's comparable product was withdrawn from the market at the same time
A competitor leaving the market explains rising sales despite a higher price (an external cause).
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