Assume a series of forest fires reduces the supply of lumber,which is an input in the production of wooden bats.Baseballs and wooden bats are complements.If the price of wooden bats increases,we can expect the
A)Demand for baseballs to decrease.
B)Supply of baseballs to decrease.
C)Demand for baseballs to increase.
D)Supply of baseballs to increase.

Question

Quizplus · Accepted Answer

When the price of wooden bats increases due to a reduced supply of lumber, demand for baseballs is expected to decrease because wooden bats and baseballs are complements. If it becomes more expensive or difficult to obtain wooden bats, fewer people might buy them, which in turn reduces the demand for baseballs, as they are often used together.

Assume a Series of Forest Fires Reduces the Supply of Lumber,which