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6. (6 marks) * If two inputs are complements in production, then an increase in the price of one input shifts the demand for another input to the right. True, false, or uncertain? Justify your position. 7. (8 marks) Explain how the imposition of a minimum wage on a monopsony can increase both wages and employment.
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Answer #1

6) When the two inputs are complements,it means that they must be used together in the production process so if the price of an input increases then it will be used less by the organization in the production which will reduce the use or demand of it's complement too and the demand curve will shift to the left.

The figure above shows the employment of input J when the price of it's complement K increases

Therefore the statement is False.

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