ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When the price of one good increases, the demand for the other decreases
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When the price of one good increases, the price of the other increases
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When the demand of one good increases, the price of the other decreases
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When the supply of one good increases, the demand of that good increases
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Detailed explanation-1: -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-2: -The demand for a good decreases, if the price of one of its complements rises.
Detailed explanation-3: -A decrease in the price of complementary goods leads to a increase in the demand for given commodity and vice versa. For example if price of a complementary good (say petrol) decreases, then demand for given commodity (say car) will rise.
Detailed explanation-4: -This means the two products are complements. If the price of one of the products increases, it will decrease the demand for the other product since consumers often buy them together. This can be graphically shown as a leftward shift in the demand for the complementary good.