For Consumers, Goods a and B Are Complementary Goods

question 360

Multiple Choice

For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result

• A) the equilibrium price of B will fall and the equilibrium price of A will rise.
• B) the equilibrium price of B will rise and the equilibrium price of A will fall.
• C) the equilibrium prices of both A and B will rise.
• D) the equilibrium prices of both A and B will fall.

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Definitions:

Positive

Refers to emotions, attitudes, or occurrences that are optimistic or beneficial in nature.

Anti-positivistic

A stance or approach in social science that criticizes or rejects the positivist belief in empirically observable, quantifiable facts and the notion that knowledge should only be derived from sensory experience.

Positivistic

Pertaining to positivism, a philosophy that advocates for the empirical and scientific approach to knowledge, emphasizing observable, objective facts.

Value Judgment

entails assessing the worth or value of something based on personal or societal standards, often incorporating ethical or moral considerations.