For Consumers, Goods a and B Are Complementary Goods

question 360

Multiple Choice

For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result

• A) the equilibrium price of B will fall and the equilibrium price of A will rise.
• B) the equilibrium price of B will rise and the equilibrium price of A will fall.
• C) the equilibrium prices of both A and B will rise.
• D) the equilibrium prices of both A and B will fall.

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Definitions:

Erosion

The process by which soil, rock, and other surface material are worn away by wind, water, or other natural agents.

Combustion

A chemical reaction that occurs when a substance reacts with oxygen to produce heat and light, commonly seen in burning.

Carbon Dioxide

A clear, scentless gas that is a byproduct of burning carbon-based substances and the respiration process, which is utilized by plants during the process of photosynthesis.

Terrestrial

Terrestrial refers to organisms or environments that are land-based, as opposed to aquatic or marine.