An increase in the price of a complement for product A would ?
Correct answer: B. Shift demand for product A inwards
- A. Shift demand for Product A outwards
- B. Shift demand for product A inwards
- C. Shift supply for product A outwards
- D. Shift supply for product A inwards
Explanation
A complement is consumed together with the product, so a higher price reduces its demand and consequently reduces demand for Product A. This shifts A's demand curve inward or to the left, rather than shifting its supply curve.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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