If an increase in the use of one factor of production increases the demand for the other, the two factors are:
A) normal factors of production.
B) substitute factors of production.
C) inferior factors of production.
D) complementary factors of production.

Question

Quizplus · Accepted Answer

Complementary factors of production are those that have a joint demand, meaning an increase in the use of one factor increases the demand for the other. For example, an increase in the use of labor may increase the demand for capital, as more machines and tools may be necessary to allow the additional workers to be productive.

If an Increase in the Use of One Factor of Production