Suppose Good B Is a Complement to Good A

question 4

Multiple Choice

Suppose good B is a complement to good A.What will a rise 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:

Market Economy

A system where the prices of goods and services are determined by supply and demand, rather than by government intervention.

Employment Discrimination

Unfair treatment of employees based on race, gender, age, religion, nationality, disability, or sexual orientation rather than job performance or qualifications.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of involuntary unemployment.

Full Production

A state of economic production in which all available resources (labor, capital, etc.) are being used efficiently, leading to the maximum possible output.