Question 26
MediumOriginal questionRead the two statements and choose the correct option.
I. A rise in the price of a complement shifts a good's demand curve to the right.
II. A rise in the price of a substitute shifts a good's demand curve to the right.
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
I is false: a dearer complement makes using the pair costlier, so demand falls (left).
II is true: a dearer substitute sends buyers to this good (right).
- Concept
- Related goods' prices
- Typical timeTypical
- 70 s
- Your timeYours
- —
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