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If two commodities are complements, this means that a rise in the price of one commodity will result in. a) a rightward shift of demand curve of the other commodity b) a rise in the price of the other commodity c)no shift in demand curve of the other commodity d) a leftward shift in demand curve of the other commodity?
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If two commodities are complements, this means that a rise in the pric...
Introduction:
When two commodities are complements, it means that they are consumed together or used in conjunction with each other. The demand for one commodity is directly influenced by the demand for the other commodity. In this scenario, a rise in the price of one commodity will have an impact on the demand and price of the other commodity.
Explanation:
When the price of one complement rises, it affects the demand and price of the other complement in the following ways:
1. The price of the complement:
When the price of one complement rises, consumers tend to reduce their demand for that particular complement. As a result, the demand for the other complement also decreases. This decrease in demand leads to a decrease in the price of the other complement.
2. Shift in demand curve:
A rise in the price of one complement can also cause a leftward shift in the demand curve of the other complement. This shift occurs because consumers are less willing to buy the other complement at the same price when the price of one complement has increased. The leftward shift in the demand curve indicates a decrease in the quantity demanded of the other complement at each price level.
Example:
Let's consider the example of cars and gasoline. Cars and gasoline are complements because cars require gasoline to run. If the price of gasoline increases, consumers are likely to reduce their demand for gasoline. This decrease in demand for gasoline will result in a decrease in the price of gasoline. Additionally, the demand for cars will also decrease as consumers find it more expensive to operate them due to the higher gasoline prices. This decrease in demand for cars will cause a leftward shift in the demand curve for cars.
Conclusion:
In conclusion, when two commodities are complements, a rise in the price of one commodity will result in a decrease in the demand and price of the other commodity. This decrease in demand can cause a leftward shift in the demand curve of the other commodity. Therefore, the correct answer to the question is option D: a leftward shift in the demand curve of the other commodity.
When two commodities are complements, it means that they are consumed together or used in conjunction with each other. The demand for one commodity is directly influenced by the demand for the other commodity. In this scenario, a rise in the price of one commodity will have an impact on the demand and price of the other commodity.
Explanation:
When the price of one complement rises, it affects the demand and price of the other complement in the following ways:
1. The price of the complement:
When the price of one complement rises, consumers tend to reduce their demand for that particular complement. As a result, the demand for the other complement also decreases. This decrease in demand leads to a decrease in the price of the other complement.
2. Shift in demand curve:
A rise in the price of one complement can also cause a leftward shift in the demand curve of the other complement. This shift occurs because consumers are less willing to buy the other complement at the same price when the price of one complement has increased. The leftward shift in the demand curve indicates a decrease in the quantity demanded of the other complement at each price level.
Example:
Let's consider the example of cars and gasoline. Cars and gasoline are complements because cars require gasoline to run. If the price of gasoline increases, consumers are likely to reduce their demand for gasoline. This decrease in demand for gasoline will result in a decrease in the price of gasoline. Additionally, the demand for cars will also decrease as consumers find it more expensive to operate them due to the higher gasoline prices. This decrease in demand for cars will cause a leftward shift in the demand curve for cars.
Conclusion:
In conclusion, when two commodities are complements, a rise in the price of one commodity will result in a decrease in the demand and price of the other commodity. This decrease in demand can cause a leftward shift in the demand curve of the other commodity. Therefore, the correct answer to the question is option D: a leftward shift in the demand curve of the other commodity.
Community Answer
If two commodities are complements, this means that a rise in the pric...
Rightward shift
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If two commodities are complements, this means that a rise in the price of one commodity will result in. a) a rightward shift of demand curve of the other commodity b) a rise in the price of the other commodity c)no shift in demand curve of the other commodity d) a leftward shift in demand curve of the other commodity?
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If two commodities are complements, this means that a rise in the price of one commodity will result in. a) a rightward shift of demand curve of the other commodity b) a rise in the price of the other commodity c)no shift in demand curve of the other commodity d) a leftward shift in demand curve of the other commodity? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about If two commodities are complements, this means that a rise in the price of one commodity will result in. a) a rightward shift of demand curve of the other commodity b) a rise in the price of the other commodity c)no shift in demand curve of the other commodity d) a leftward shift in demand curve of the other commodity? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If two commodities are complements, this means that a rise in the price of one commodity will result in. a) a rightward shift of demand curve of the other commodity b) a rise in the price of the other commodity c)no shift in demand curve of the other commodity d) a leftward shift in demand curve of the other commodity?.
If two commodities are complements, this means that a rise in the price of one commodity will result in. a) a rightward shift of demand curve of the other commodity b) a rise in the price of the other commodity c)no shift in demand curve of the other commodity d) a leftward shift in demand curve of the other commodity? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about If two commodities are complements, this means that a rise in the price of one commodity will result in. a) a rightward shift of demand curve of the other commodity b) a rise in the price of the other commodity c)no shift in demand curve of the other commodity d) a leftward shift in demand curve of the other commodity? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If two commodities are complements, this means that a rise in the price of one commodity will result in. a) a rightward shift of demand curve of the other commodity b) a rise in the price of the other commodity c)no shift in demand curve of the other commodity d) a leftward shift in demand curve of the other commodity?.
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