If a and B Are Complements and the Cost of a Factor

question 131

Multiple Choice

If A and B are complements and the cost of a factor of production used in the production of A decreases,then the price of

• A)both A and B will rise.
• B)both A and B will fall.
• C)A will fall and the price of B will rise.
• D)A will rise and the price of B will fall.
• E)A will fall and the price of B will remain unchanged.

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Definitions:

Moral Imperative

A principle or obligation that is ethically necessary or required, compelling a person to act in a certain way.

Ethical Intensity

The degree of importance or impact an ethical issue has, based on its consequences, social consensus, and probability of harm.

Federal Law

Legislation enacted by the national government of a sovereign state that applies to the entire country.

Social Consensus

A general agreement among the members of a given group or society, reflecting a common understanding or shared values and beliefs.