Assume product A is an input in the production of product B. In turn, product B is a complement to product C. We can expect a decrease in the price of A to:
A. increase the supply of B and increase the demand for C.
B. decrease the supply of B and increase the demand for C.
C. decrease the supply of B and decrease the demand for C.
D. increase the supply of B and decrease the demand for C.
Answer: A
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The official poverty definition in the U.S. is having an income that
a. provides minimum biological needs b. is less than three times the cost of a nutritionally adequate yet frugal diet c. places the household in the bottom 20 percent of the income distribution d. is less than the average U.S. welfare allowance e. is approximately equal to the average household income of Canada
The idea behind the traditional industrial policy of import substitution is:
A. to protect infant industries until they can become price competitive in the world market. B. give certain industries a chance to enter a market and gain efficiencies that companies elsewhere in the world have already gained in that industry. C. build up home industries to compete with others in the world. D. All of these statements are true.