A decrease in the price of a complement in production leads to
A) no change in the supply of the good in question.
B) an increase in the supply of the good in question.
C) a decrease in the supply of the good in question.
D) a decrease in the quantity supplied of the good in question.
E) an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question.
C
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For a normal good, such as steak,
a. quantity demanded increases as its price falls. b. the income and substitution effects work in opposite directions c. the income effect is negative d. the income effect reinforces the substitution effect e. the supply curve is vertical
The supply curve of a price-taker firm in the short run is the
a. firm's average variable cost curve. b. portion of the firm's average total cost curve that lies above average variable cost curve. c. portion of the firm's marginal cost curve that lies above average variable cost curve. d. firm's marginal revenue curve.