SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a decrease in the supply of oranges
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a health scare about eating oranges
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an increase in the price of a complement
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an increase in the price of a substitute
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Detailed explanation-1: -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.
Detailed explanation-2: -As per law of demand, when the price of a commodity rises the quantity demanded of the commodity decreases, i.e., implying an inverse relationship between demand and price. Thus, in case of oranges, a rise in price will lead to a fall in quantity demanded for oranges. Was this answer helpful?
Detailed explanation-3: -If the price of oranges goes up, we would expect an increase in demand for apples since consumers would move consumption away from the higher priced oranges towards apples which might be considered a substitute good. Complements, on the other hand, are goods that are consumed together, such as caramels and apples.