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Does this statement make sense? How and why? The Government of Canada encourages Canadians to take public transportation for the sake of the environment. In
Does this statement make sense? How and why?
"The Government of Canada encourages Canadians to take public transportation for the sake of the environment. In this case the demand for cars will fall. The decrease in the demand for cars will cause the price of cars to fall. The lower price of cars, however, will then increase the demand for cars. In the new equilibrium, Canadians might end up buying more cars than they did initially contrary to what the Government is wishing for."
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