ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the supply curve of a normal good shifts leftward.
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the supply curve of a normal good shifts rightward
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the demand curve for a normal good shifts rightward.
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the demand curve for a normal good shifts leftward.
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Detailed explanation-1: -With the rise in the income, people will demand more of it thus its (demand) curve will shift to the right. Also, with the fall in the price of its complement (those commodities that are used together), the demand will rise and its curve will shift to the right. the demand curve for a normal good shifts leftward .
Detailed explanation-2: -If two goods are complements, this means that a rise in the price of one commodity will induce a downward shift in demand for the other commodity. The prices of complementary or substitute goods also shift the demand curve.
Detailed explanation-3: -A decrease in the price of complementary goods will shift the demand curve rightward. It causes an increase in demand for a good or a rightward shift in the demand curve causes an increase in both price and output of a complementary good in an economy.
Detailed explanation-4: -The demand for a good increases, if the price of one of its complements falls. The demand for a good decreases, if the price of one of its complements rises.
Detailed explanation-5: -Increases in demand are shown by a shift to the right in the demand curve. This could be caused by a number of factors, including a rise in income, a rise in the price of a substitute or a fall in the price of a complement.