If the Price for a Product Increases, the Demand for the Complementary

question 46

Multiple Choice

If the price for a product increases, the demand for the complementary product will

• A)decrease.
• B)increase.
• C)stay the same.
• D)become more elastic.
• E)become more inelastic.

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Definitions:

Demand for Labor

The total amount of workers that employers want to hire at a given wage rate and time.

Productivity of Labor

The output per labor hour or worker, indicating how efficiently labor is used in the production of goods and services.

Labor Resource Market

The market in which individuals offer their labor to employers in exchange for wages.

Substitute Input

An alternative resource or material used in the production process that can replace another in response to changes in market conditions or prices.