For Consumers, Goods a and B Are Complementary Goods

question 442

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 prices of both A and B will fall.
• 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:

Equivalent

Identical in worth, quantity, role, significance, and so on.

Consistent

Characteristics or conditions that do not contradict each other and are in harmony.

Biconditional

A logical connective between statements where both conditions imply each other; typically phrased as "if and only if".

Equivalent Statements

Propositions that have the same truth value in every possible scenario.