If A and B are complements in production and the price of A falls,the supply of B
A)increases,and the price of B rises.
B)increases,and the price of B falls.
C)decreases,and the price of B falls.
D)decreases,and the price of B rises.
E)does not change.

Question

Quizplus · Accepted Answer

If A and B are complements in production, then they are produced together to meet the same market demand. In this case, if the price of A falls, producers will decrease its production, reducing the production of B since they are complementary products. As a result, the supply of B reduces, leading to an increase in the price of B. Therefore, the correct answer is D.

If a and B Are Complements in Production and the Price