Your landscaping company uses labor and shovels. The price of shovels falls, and this _____ your demand for labor because labor and shovels are _____.

Question

Quizplus · Accepted Answer

When the price of shovels falls, your company can afford to buy more shovels. Since labor and shovels are complements in landscaping work (you need workers to use the shovels), a decrease in the price of shovels makes using more labor more productive and cost-effective, thus raising the demand for labor.

Your Landscaping Company Uses Labor and Shovels