The demand curve for a good will shift leftward if there is:
A)a change in the technology used to produce the good.
B)an increase in the price of the good.
C)an increase in the price of a complementary good.
D)a decrease in the price of the good.

Question

Quizplus · Accepted Answer

An increase in the price of a complementary good will reduce the demand for the good, causing the demand curve to shift leftward. Complementary goods are those that are consumed together, such as hamburgers and buns, so an increase in the price of buns would reduce the demand for hamburgers. A change in technology (A) would affect the supply curve, not the demand curve, while a decrease in price (D) would shift the demand curve rightward. An increase in price (B) would cause movement along the demand curve, not a shift in the curve itself.

The Demand Curve for a Good Will Shift Leftward If