Use the following to answer question(s): Demand Shifters and Supply Shifters

-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose the technology for producing snowboards improves.Which panel best describes how this will affect the market for winter parkas, a complement of snowboards?

Question

Use the following to answer question(s): Demand Shifters and Supply Shifters
 
-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose the technology for producing snowboards improves.Which panel best describes how this will affect the market for winter parkas, a complement of snowboards?

Quizplus · Accepted Answer

An improvement in technology for producing snowboards would result in an increase in demand for snowboards (a rightward shift in the demand curve, as shown in panel a). As a result, the market for winter parkas, a complement of snowboards, would also increase (a rightward shift in the demand curve for winter parkas, as shown in panel a). Therefore, panel (a) best describes how this will affect the market for winter parkas.

Use the Following to Answer Question(s): Demand Shifters and Supply