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

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Quizplus · Accepted Answer

Since A and B are complementary goods, a decrease in the cost of a resource used in the production of A would result in an increase in the supply of A. This increase in supply would cause the equilibrium price of A to fall. However, since A and B are complementary goods, the decrease in the price of A would increase the demand for B. This increase in demand for B would cause the equilibrium price of B to rise. Therefore, the equilibrium price of B will rise and the equilibrium price of A will fall.

For Consumers, Goods a and B Are Complementary Goods