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Default Copy Formula Problem

This is weird. When I copy a formula and paste it, the new cell displays the
old cell's data, even though the formula has been changed to reflect the
relative cells.

Example

Row 1: 1 + 2 = 3 (formula is A1+B1)
Row 2: 2+3 = 3 (formula is A2 + B2)

Why does it still display 3 in cell C2? If I type in the formula it works.
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MC
 
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