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Which of the following will occur if the government decreases taxes on capital? Assume that the relationship between labor and capital are complementary good (Hint: Solving this problem will take two steps. First you have to figure out the effect that lowering taxes on capital will have on the price of capital. Second, you have to figure out how a change in the price of capital affects the labor market.) O A. Eq. Wages increase and Eq. Quantity of labor increases O B. Eq. Wages decrease and Eq. Quantity of labor decreases O C. Eq. Wage increases and Eq. Quantity of labor decreases. O D. Eq. Wage decreases, and Eq. Quantity of labor increases. hs Moving to another question will save this response