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:

Governmental Power

The extent of authority and control that a government holds to regulate, manage, and influence societal and economic activities.

Theocratic Law

A system of law that relies on religious doctrine and belief.

Adjudicated

The process by which a judge or a legally appointed arbiter receives and weighs evidence to make a legal decision or judgment.

Common Law

A legal system in which judges interpret law and set precedent for subsequent interpretation and usage.