3.4 Market Effects of Changes in Demand
Figure 3.3
-Figure 3.3 illustrates the demand for tacos. Assume that tacos and beer are complements. An increase in the price of beer would bring about a movement from

Question

3.4 Market Effects of Changes in Demand
  Figure 3.3
-Figure 3.3 illustrates the demand for tacos. Assume that tacos and beer are complements. An increase in the price of beer would bring about a movement from

Quizplus · Accepted Answer

When the price of beer increases, and since beer and tacos are complements, the demand for tacos would decrease, shifting the demand curve from D₂ to D₁.