For Consumers, Goods a and B Are Complementary Goods

question 143

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

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Definitions:

Paid Within One Year

Refers to obligations or debts that are due to be paid off within a twelve-month period.

Net Property

The total value of a company’s property, plant, and equipment assets after deducting accumulated depreciation and impairment losses.

Plant And Equipment

Long-term physical assets used in the operation of a business, such as machinery, buildings, and vehicles.

Current Asset

Assets expected to be converted into cash, sold, or used up within one year or within the business's operating cycle, whichever is longer.