What happens to the demand for a good if a complement's price increases?
A) The demand decreases and the demand curve shifts rightward.
B) The demand increases and the demand curve shifts rightward.
C) The demand decreases and the demand curve shifts leftward.
D) The demand increases and the demand curve shifts leftward.
E) There is no impact on demand for the good and the demand curve does not shift.

Question

Quizplus · Accepted Answer

When the price of a complement increases, it becomes relatively more expensive to buy both products together. As a result, demand for the complementary good is likely to decrease, and consequently, demand for the original good will also decrease. This leads to a leftward shift in the demand curve for the original good.

What Happens to the Demand for a Good If a Complement's