If two inputs are complementary and employed in fixed proportions, an increase in the price of one input will:
A. Decrease the demand for the other input
B. Increase the demand for the other input
C. Increase the quantity demanded for the other input
D. Have no effect on the demand for the other input
A. Decrease the demand for the other input
Economics
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The short-run aggregate supply curve is positively sloped because
A) real interest rates rather than nominal rates are used. B) no price adjustments take place in the short-run. C) complete price adjustments take place in the short-run. D) some price adjustments take place in the short-run.
Economics
A good that has external costs associated with its production will be
A) produced at the optimal level. B) underproduced. C) overproduced. D) not produced.
Economics