A Decrease in the Price of a Complement in Production

question 304

Multiple Choice

A decrease in the price of a complement in production leads to

• A) a decrease in the supply of the good in question.
• B) an increase in the supply of the good in question.
• C) no change in the supply of the good in question.
• D) a decrease in the quantity supplied of the good in question.
• E) an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question.

---

Definitions:

Lost Contribution Margin

The profit forgone by not manufacturing or selling a product, represented by the contribution margin that would have been earned on each unit.

Aircraft Products Division

A specialized unit within a company focused on the manufacturing and development of products specific to aviation and aerospace uses.

Relay Division

This term does not specify a widely recognized concept or key term in a general context and may refer to a specific internal department or team within an organization focused on relaying or transferring goods, services, or information.

Variable Expenses

Costs that change in proportion to the activity of a business, such as sales volume or production levels.