Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It shifts to the left
B
It shifts to the right
C
It remains unchanged
D
It becomes steeper
Understanding the Answer
Let's break down why this is correct
Answer
When the price of a complementary good decreases, the demand curve for that good typically shifts to the right. Complementary goods are products that are often used together, like coffee and sugar. If the price of sugar goes down, more people will want to buy it, and this can lead to an increase in coffee sales as well since many people enjoy coffee with sugar. As a result, the lower price of sugar makes it more attractive for consumers, which boosts the demand for coffee. This change leads to a higher quantity of coffee being bought at various prices, shifting the demand curve outward.
Detailed Explanation
When the price of a complementary good goes down, people buy more of it. Other options are incorrect because Some might think that lower prices mean less demand; It's easy to think that demand stays the same when prices change.
Key Concepts
demand curve
Topic
Complementary Goods and Demand
Difficulty
easy level question
Cognitive Level
understand
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