Suppose there are two goods a and b in the economy and


Suppose there are two goods A and B in the economy and these two goods are complementary of each other. At the beginning, the market for each good is in equilibrium. How will an increase in the production costs of B affect both markets? Which properties does the new equilibrium have? Use appropriate diagrams in your ans.

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Microeconomics: Suppose there are two goods a and b in the economy and
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