What can be concluded if the demand curve for product B shifts to the - ProProfs Discuss
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What can be concluded if the demand curve for product B shifts to the right as the price of product A declines?

This question is part of Macroeconomics Test One
Asked by Skimind, Last updated: Dec 01, 2020

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2 Answers

F. Ray

F. Ray

F. Ray
F. Ray, Student, Kansas City

Answered Dec 05, 2018

If the price of product A drops and the demand curve of product B shifts right, then it can easily be concluded that products A and B are complementary products.

When a curve shifts right, then there is less demand for it when another product is at a certain price point. If product A is just as good as product B and costs less, then more people are going to buy product A. Product B’s demand will shift right on a demand curve.

If product A’s price went up, then the curve for B would shift left instead of right. Especially if the two products are more or less the same and are complementary goods. That’s all it means, really.

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John Smith

John Smith

John Smith
John Smith

Answered Mar 01, 2017

A and B are complementary goods.
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