An increase in the price of good 2 will cause the demand curve for good 1 to shift out.

Answer the following statement true (T) or false (F)


False

Rationale: The demand curve for good 1 could shift in (if the goods are relatively complementary) or out (if the goods are relatively substitutable).

Economics

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If a negative externality exists in the market for dirt bikes and that market is perfectly competitive:

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Economics