Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The demand curve shifts to the right
B
The demand curve shifts to the left
C
The demand curve remains unchanged
D
The demand curve becomes vertical
Understanding the Answer
Let's break down why this is correct
Answer
When the price of one complementary good increases, it usually leads to a decrease in the demand for its pair. Complementary goods are products that are often used together, like coffee and cream. If the price of cream goes up, people might buy less cream, which means they will also buy less coffee because they typically use them together. This change shifts the demand curve for coffee to the left, indicating that at every price, fewer people want to buy coffee now. For example, if a coffee shop raises the price of cream, customers may choose to buy less coffee because they don’t want to pay more for both items.
Detailed Explanation
When the price of one complementary good goes up, people buy less of it. Other options are incorrect because Some might think that higher prices mean more demand; It's a common mistake to think demand stays the same.
Key Concepts
demand curve
market analysis.
Topic
Complementary Goods and Demand
Difficulty
medium level question
Cognitive Level
understand
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