Good A and good B are complements in production. What happens to the supply of good A and the supply of good B if the price of good B increases?

Question

Quizplus · Accepted Answer

When the price of good B increases, producers are incentivized to produce more of it. Since good A and good B are complements in production, producing more of good B also results in more of good A being produced, increasing the supply of both goods.

Good a and Good B Are Complements in Production