The problem of complementary demand means that in subsistence agricultural economy,trying to establish a manufacturing economy meant
A) no manufacturing firm would be willing to invest unless a large number of manufacturing industries were started simultaneously.
B) no manufacturing firm would be willing to invest unless it was given infant industry protection.
C) no manufacturing firm would be willing to invest unless the government agreed to purchase a minimum amount of its product.
D) no manufacturing firm would be willing to invest unless wages were increased enough in agriculture to allow farmers to buy their product.
E) unless there was sufficient interdependencies among the manufacturing firms.

Question

Quizplus · Accepted Answer

The problem of complementary demand in the context of transitioning from a subsistence agricultural economy to a manufacturing economy implies that manufacturing firms may be hesitant to invest unless there is a simultaneous and broad establishment of various manufacturing industries, creating a market and demand for each other's products.

The Problem of Complementary Demand Means That in Subsistence Agricultural