Goods A and B are substitutes. If the price of good A falls, the marginal revenue product (MRP) curve of good B

If new substitutes for a good appear on the market, we would expect the price elasticity of demand for that product to increase

Indicate whether the statement is true or false

Under classical theory, wages and prices are assumed to be relatively flexible both upward and downward. Hence, the short-run aggregate supply curve returns relatively quickly to a position of long-run equilibrium

a. True b. False Indicate whether the statement is true or false