If Two Inputs Are Complementary and Employed in Fixed Proportions

question 124

Multiple Choice

If two inputs are complementary and employed in fixed proportions, an increase in the price of one input will

• A)decrease the demand for the other input.
• B)increase the demand for the other input.
• C)increase the quantity demanded for the other input.
• D)have no effect on the demand for the other input.

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Definitions:

Property

Legal rights or interests over tangible or intangible assets, including real estate, personal items, and intellectual property.

General Assembly

A legislative or deliberative body, often the name for the gathering representing the full membership of an organization, nation, or state, where members discuss and address key issues.

Indentured Servants

Individuals who agreed to work for a certain number of years in exchange for passage to a new country, living expenses, or other benefits during the colonial period and beyond.

African Slaves

African slaves were individuals forcibly taken from Africa to work in foreign lands, most notoriously across the Americas, during the transatlantic slave trade era.