If Resources a and B Are Complementary and Employed in Fixed

question 29

Multiple Choice

If resources A and B are complementary and employed in fixed proportions,

• A)a change in the price of A will have no effect on the quantity of B employed.
• B)an increase in the price of A may either increase or decrease the demand for B.
• C)an increase in the price of A will increase the demand for B.
• D)an increase in the price of A will decrease the demand for B.

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Definitions:

Rental Price

The amount of money charged to rent a property, such as an apartment or house, typically billed on a monthly basis.

Causal Relationship

When one variable causes a change in another variable.

Explanatory Variables

Variables in a statistical model that are used to explain variations in the response variable.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.