Question 11
Theory of DemandThe demand curve would shift to the left when there is a rise in
- A.the price of a substitute
- B.the price of a complement
- C.income
- D.the supply of the commodity
Show the answer and explanation
Answer: B (the price of a complement)
Explanation
If a complement becomes dearer, people buy less of it and so less of this good at every price: demand shifts left. A dearer substitute or higher income shifts it right.