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Commerce · Q994

Economics

Graduate and Post Graduate · Commerce · question 994

Q994

Goods 'A' and 'B' are complementary goods. The cost of resources used in the production of A decreases. As a result,

A.
The equilibrium price of B will fall and the equilibrium price of A will rise
B.
The equilibrium price of both A and B will rise
C.
The equilibrium price of B will rise and the equilibrium price of A will fall
Answer
D.
The equilibrium prices of both A and B will fall

Answer: Option C

Solution

Answer: Option C
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