1. 

Consider the following facts about three goods (X, Y, and Z): . Firm X produces a good that it sells to Firm Y. . Firm Y produces a service using the goods purchased from Firm X. . Firm Y sells its service to consumers. . Firm Z produces a service that is similar to Firm Y, and they also sell to consumers. . Consumers consider the services produced by Firms Y and Z to be substitutes. . Firm Z has no relationship with Firm X. Firm X experiences an increase in the demand for its product. We can expect this to increase V the price that it charges for its product. This change in the price of good X will cause the demand V curve for good Y to shift left This change in the market for good Y will cause the price of good Y to increase This change in the price of good Y will cause the demand V for good Z to decrease