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Consider the market for GM cars. Recently, there has been a negative shock in the supply of computer chips that are a necessary part of
Consider the market for GM cars. Recently, there has been a negative shock in the supply of computer chips that are a necessary part of the production process. Which of the following statements is false?
a.
Cars and chips are substitutes.
b.
Cars and chips are complements.
c.
The shock will result in a car shortage.
d.
The shock will result in higher car prices.
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