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JAMB Economics 1992 Question 18

Question 18

Theory of Demand

The demand curve for a normal good will shift to the left if

  1. A.the incomes of consumers rise
  2. B.the price of the goods rises
  3. C.the prices of complementary goods rise
  4. D.advertising expenditure on complementary goods increases
Show the answer and explanation

Answer: C (the prices of complementary goods rise)

Explanation

If complements become dearer, people buy fewer of them and less of this good at every price, so demand shifts left. A change in the good's own price only moves along the curve.