If Goods Y and Z are complements in production, the increase in the price of Good Y will shift the supply curve for Good Z to the right.

Question

Quizplus · Accepted Answer

If Goods Y and Z are complements in production, an increase in the price of Good Y will make it more expensive to produce Good Z, leading to a decrease in the supply of Good Z. This will shift the supply curve for Good Z to the left, not to the right.

If Goods Y and Z Are Complements in Production, the Increase