If A and B are substitutes in production and the price of A falls,the supply of B
A)increases,and the price of B rises.
B)increases,and the price of B falls.
C)decreases,and the price of B falls.
D)decreases,and the price of B rises.
E)does not change.

Question

Quizplus · Accepted Answer

If A and B are substitutes in production, a fall in the price of A will make A more attractive to producers, leading to an increase in the supply of A. As a result, producers will shift away from producing B, causing a decrease in the supply of B. The decrease in the supply of B will lead to an increase in the price of B.

If a and B Are Substitutes in Production and the Price