ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rise in the price of a complement
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Rise in the price of a substitute
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Fall in the price of the good
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Fall in the quantity supplied
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Detailed explanation-1: -(iii) Rise in the price of complementary goods: The demand for a good falls with a rise in the price of its complementary goods. As a result, the demand curve for the commodity shifts to the left with a rise in the price of its complementary goods.
Detailed explanation-2: -The demand curve shifts to the left if the determinant causes demand to drop. That means less of the good or service is demanded. That happens during a recession when buyers’ incomes drop. They will buy less of everything, even though the price is the same.
Detailed explanation-3: -Demand for a complementary good decreases when the price of the commodity rises. Demand curve will shift to the left.
Detailed explanation-4: -The demand for a good decreases, if the price of one of its complements rises.
Detailed explanation-5: -decrease in demand. When there is a leftward shift of a demand curve, the quantity desired at each price is less. The quantity corresponding to each level of price is lower than it was before. This is called a decrease in demand.