Interdependence in economics means that decisions made by one business affect which of the following?

Interdependence in economics reflects how various entities in the economy rely on each other. When one business makes decisions—such as changing prices, altering production levels, or investing in new technologies—the implications extend beyond its immediate sphere. These decisions have a ripple effect on other businesses, particularly those within the same industry or related sectors.

For instance, if a company lowers its prices, it may impact competing businesses, prompting them to adjust their pricing strategies to maintain competitiveness. Similarly, decisions regarding product innovation or shifts in demand can influence suppliers, competitors, and even the market as a whole. This interconnectedness is crucial for understanding market dynamics and highlights why businesses must consider broader economic impacts when making decisions.

The influence of a business's decisions is not confined solely to aspects like its employees or customers, nor does it only reach its supply chain; rather, it encompasses a wider network of businesses that interact in various ways within the economy.