Question

Decrease in the price of the complementary goods leads to ______.

Options

• Upward movement along the same demand curve

• Downward movement along the same demand curve

• Rightward shift in the demand curve

• Leftward shift in the demand curve

Answer 1

Decrease in the price of the complementary goods leads to rightward shift in the demand curve.

Explanation:

A lower price of a complementary good makes using the two goods together less costly, raising demand for the given good. This is a rightward shift, not movement along the curve.