Roberta spends all of her income on two items, staplers and paper clips. If the price of a stapler increases, there will be a ________ Roberta's demand curve for staplers and a ________ Roberta's demand curve for paper clips.
A) rightward shift of; leftward shift of
B) leftward shift of; movement along
C) movement along; rightward shift of
D) movement along; leftward shift of

Question

Quizplus · Accepted Answer

When the price of a stapler increases, Roberta will move along her demand curve for staplers, purchasing fewer due to the higher price. For paper clips, if they are a substitute or complementary good, the demand curve may shift rightward if she reallocates her spending towards them.

Roberta Spends All of Her Income on Two Items, Staplers