If resources A and B are complementary and employed in fixed proportions,
A)a change in the price of A will have no effect on the quantity of B employed.
B)an increase in the price of A may either increase or decrease the demand for B.
C)an increase in the price of A will increase the demand for B.
D)an increase in the price of A will decrease the demand for B.

Question

Quizplus · Accepted Answer

When resources A and B are complementary and used in fixed proportions, an increase in the price of A makes it more expensive to use both resources together, thus decreasing the demand for resource B as well.

If Resources a and B Are Complementary and Employed in Fixed