Suppose the productivity of labor increases and at the same time the price of capital, which is complementary to labor, increases. As a result, the demand for labor

A) will increase.
B) will decrease.
C) may either increase or decrease.
D) will not change.

Productivity of Labor

The measure of output per unit of labor input.

Complementary

Goods or services that are used together, where the increase in consumption of one results in an increase in the consumption of the other.

Price of Capital

The cost of accessing funds or resources for investment purposes, often influenced by interest rates, market demand, and availability of capital.