If A and B are complements in production and the price of A falls, the supply of B

Question

Quizplus · Accepted Answer

If A and B are complements in production, then a decrease in the price of A will result in a decrease in the supply of A, and therefore a decrease in the supply of B as well. This is because the production of B requires the use of A, so a decrease in the supply of A will reduce the ability of producers to produce B. As the supply of B decreases, the price of B will increase as consumers compete for the remaining supply.

If a and B Are Complements in Production and the Price