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Figure: Shifts in Demand and Supply III
-(Figure: Shifts in Demand and Supply III)Use Figure: Shifts in Demand and Supply III.The figure 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 in consumption of snowboards?

Question

Use the following to answer questions:
Figure: Shifts in Demand and Supply III 
-(Figure: Shifts in Demand and Supply III)Use Figure: Shifts in Demand and Supply III.The figure 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 in consumption of snowboards?

Quizplus · Accepted Answer

An improvement in technology for producing snowboards will likely decrease their price, increasing the quantity demanded. As snowboards and winter parkas are complements, the demand for winter parkas will increase, shifting the demand curve to the right, as shown in Panel (a).

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