Answer to Question #106776 in Microeconomics for Steve

Question #106776
Assume that cooking gas and stoves are complements. When the price of cooking has goes up the demand curve for stoves:
1) shifts to the left
2) shifts to the right
3) remains constant
4) shifts to the right initially and then returns to its original position
5) shifts to the left simultaneously with demand curve for cooking gas
1
Expert's answer
2020-03-27T10:36:06-0400

Correct answer is 1).

Because when two goods are complements, than if the price of one good goes up, the demand for the other good decreases, which is shown in shift of demand curve to the left.


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Comments

Assignment Expert
30.03.20, 14:18

Dear visitor, please use panel for submitting new questions

Steve
27.03.20, 16:45

The demand for potatoes is Qd=120-p Supply of potatoes is Qs= 5p What is the equilibrium quantity of potatoes?

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