If Products a and B Are Complements and the Price

question 13

Multiple Choice

If products A and B are complements and the price of B decreases, the

• A) demand curves for both A and B will shift to the left.
• B) amount of B purchased will increase, but the demand curve for A will not shift.
• C) demand for A will increase and the quantity of B demanded will increase.
• D) demand for A will decline and the demand for B will increase.

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Definitions:

Economic Profits

The difference between total revenue and the total costs (both explicit and implicit costs) of a company, indicating the surplus generated from business activities.

Savings Account

An account for holding deposits at a bank or another financial entity, ensuring the safety of the principal amount while offering a slight interest rate.

Annual Interest

The amount of interest due over the course of a year on borrowed capital or invested funds.

Accounting Profits

The difference between a company's total revenue and its explicit costs, not including opportunity costs.