Suppose Good B Is a Complement to Good A

question 81

Multiple Choice

Suppose good B is a complement to good A.What will a decrease in the price of good B do to good A?  

• A) It will increase the quantity demanded of A. 
• B) It will decrease the demand for A. 
• C) It will increase the demand for A. 
• D) It will decrease the quantity demanded of A.

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Definitions:

Aggregate-Supply Curve

A curve that shows the quantity of goods and services that firms choose to produce and sell at each price level

Trade-Off

An exchange where getting something of value requires giving up something else of value, typically used in the context of making decisions with limited resources.

Short Run

A period during which at least one of a firm's inputs is fixed and cannot be changed.

Fed's Policy

The set of monetary policy guidelines and actions taken by the Federal Reserve, the central banking system of the United States, to control the money supply and achieve macroeconomic goals.