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:

Good

In economics, it refers to a material item that satisfies some human desire or need. Goods can be tangible, like a book, or intangible, like a service.

Computer Software

Programs and operational information that run on computers, directing the computer's hardware to perform specific tasks.

Computers

Electronic devices capable of executing a set of instructions to perform various tasks, including processing, storing, and displaying information.

Price

The total of money that is predicted, demanded, or delivered in settlement for a product.