If A and B are complementary goods in consumption, and the cost of a resource used in the...
Question:
If A and B are complementary goods in consumption, and the cost of a resource used in the production of A decreases, then the price of:
A) both A and B will fall.
B) A will rise and the price of B will fall.
C) A will fall and the price of B will rise.
D) A will fall and the price of B will remain unchanged.
E) both A and B will rise.
Complementary Goods:
A complementary good is a product that is used together with another product. An example of a pair of complementary goods is a car and gasoline since people use these products in conjunction.
Answer and Explanation: 1
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View this answerThe answer is C) A will fall and the price of B will rise.
If the cost of a resource applied for the production of a good decreases, then the price...
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Complementary Goods in Economics: Definition & Examples
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Chapter 3 / Lesson 10
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What are complementary goods? See complementary goods examples and learn how demand is impacted. See the difference between substitute and complementary goods.
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