True, False or Uncertain (15 points total or 3 points each)

Are each of the following true, false or uncertain? Justify your answer in two (2) sentences or less. If the answer is "false" you may provide a counter-example as justification

6. Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, with other things remaining the same, we would expectthe demand curve for steel to shift to the right.

7. Suppose biochemists discover an enzyme that can double the amount of ethanol that may be derived from a given amount of biomass. Based on this technological development, we expect the supply curve for ethanol to shift to the right.

8.A few sellers may behave as if they operate in a perfectly competitive market if the market demand is highly inelastic.