A and B Are Substitute Goods, but a and C

question 96

Multiple Choice

A and B are substitute goods, but A and C are complementary goods. If the cost of producing A decreases, then the demand for

• A) both B and C will decrease.
• B) both B and C will increase.
• C) B will increase and the demand for C will decrease.
• D) B will decrease and the demand for C will increase.