What can be concluded if the demand curve for product B shifts to the - ProProfs Discuss
Advertisement

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

What can be concluded if the demand curve for product B shifts to the right as the price of product A declines?<br/>

Change Image    Delete

Asked by Skimind, Last updated: Nov 10, 2024

+ Answer
Request
Question menu
Vote up Vote down

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.

upvote downvote
Reply 

John Smith

John Smith

John Smith
John Smith

Answered Mar 01, 2017

A and B are complementary goods.
upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.