When the price of capital decreases,if the demand for labor then capital and labor are gross.
A) increases,substitutes
B) increases,complements
C) remains the same,substitutes
D) remains the same,complements
E) decreases,complements

Question

Quizplus · Accepted Answer

When the price of capital decreases and the demand for labor increases, it indicates that capital and labor are complements. This is because a decrease in the price of capital makes it cheaper to produce goods, leading to an increase in production. If labor and capital are complements, this increase in production requires more labor, hence the increase in demand for labor.

When the Price of Capital Decreases,if the Demand for Labor