If the price of any complement goods rises:a)Demand curve shifts to le...
Complementary goods are those goods which consume together. for example-car and petrol....when price of car increase then demand of petrol and car decreases because petrol is neccesary to drive a car and when price of car increases then people do not buy car and due to this reason petrol is also not in demand...so demand curve shifts to left....and remember complimentary goods are joint goods
View all questions of this test
If the price of any complement goods rises:a)Demand curve shifts to le...
Complementary goods are those that are consumed together, such as coffee and cream. If the price of cream increases, people will tend to buy less of it, which means they will also buy less coffee since they usually consume it with cream. This decrease in demand for coffee will cause the demand curve to shift to the left. The opposite would happen if the price of a complementary good decreases, causing the demand curve to shift to the right.
If the price of any complement goods rises:a)Demand curve shifts to le...
If the price of any complementary goods rises, it would lead to a decrease in the demand for the complementary good. This decrease in the demand for the complementary good would, in turn, lead to a decrease in the demand for the main good. Therefore, the demand curve for the main good would shift to the left. This is because the consumers' willingness to buy the main good would be lower due to the higher price of the complementary good. For instance, if the price of coffee increases, the demand for coffee creamer, which is a complementary good, would decrease. This decrease in the demand for coffee creamer would, in turn, lead to a decrease in the demand for coffee. Therefore, the demand curve for coffee would shift to the left. Hence, option (a) is the correct answer.