If Goods R and S are complements in production, if the price of Good R increases, both the supply curve for Good R and Good S will shift.

Question

Quizplus · Accepted Answer

If goods R and S are complements in production, an increase in the price of Good R does not directly cause the supply curve for Good R and Good S to shift. Instead, it might affect the quantity supplied of both goods but not necessarily shift their supply curves. Supply curve shifts are caused by factors other than the price of the goods themselves, such as changes in production costs or technology.

If Goods R and S Are Complements in Production, If