If A and B are substitutes and the cost of a factor of production used in the production of A increases, then the price of OA. And B fall. OB. B falls, but the price of A rises. OC. B rises, but the price of A falls. OD. A falls, and the price of B will stay unchanged. OE. A and B rise.

If A and B are substitutes and the cost of a factor of production used in the production of A increases, then the price of OA. And B fall. OB. B falls, but the price of A rises. OC. B rises, but the price of A falls. OD. A falls, and the price of B will stay unchanged. OE. A and B rise.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 7WNG

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If A and B are substitutes and the cost of a factor of production used in the production of A increases, then the price of
OA. And B fall.
OB. B falls, but the price of A rises.
OC. B rises, but the price of A falls.
OD. A falls, and the price of B will stay unchanged.
OE. A and B rise.

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