ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: The correct option is d) price of a complement falls. Shifts in the demand curve can be caused by the following factors: changes in the number of consumers, expectations, changes in consumer preferences, changes in income, changes in prices of substitute and complementary products.

Detailed explanation-2: -The demand for a good increases, if the price of one of its substitutes rises. The demand for a good decreases, if the price of one of its substitutes falls. A good that is consumed with another good.

Detailed explanation-3: -Due to the decrease in income of the consumer, the purchasing power of the consumer will also decrease. So the demand for the product in the market will also decrease. Resultantly demand will change even if the price and supply of the product remain the same. This is called a decrease in demand.

Detailed explanation-4: -Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices.

Detailed explanation-5: -A decrease in the price of a substitute causes the demand curve for a good to shift to the left. An increase in the price of a substitute causes the demand curve for a good to shift to the right.