What can we conclude if the demand curve for product A goes shifting to the right as the price of product B decreases?

1. If the demand curve for product A moves to the right, and the price of product B increases, it can be concluded that:
A. A and B are substitute goods;
B. A and B are complementary goods;
C. A is an inferior good, and B is a superior good;
D. Both goods A and B are inferior.
2.  If a point falls inside the production possibility curve, what does it indicate ?
A    Resources are over utilized
B    Resources are under utilized
C     There is employment in the economy
D    Both (b) and (c)
3. In which type of economy do consumers and producers make their choices based on the market forces of demand and supply?
(a)    Open Economy
(b)    Controlled Economy
(c)     Command Economy
(d)    Market Economy
4.  In a free market economy, when consumers increase their purchase of a goods and the level of _______ exceeds _______ then prices tend to rise
A    Demand, Supply
B    Supply, Demand
C     Prices, Demand
D    Profits, Supply

5) Scarcity requires that people must
A) cooperate.
B) compete.
C) trade.
D) make choices.

6. Which of the following is a microeconomic topic?
A) The reasons why Kathy buys less orange juice.
B) The reasons for a decline in average prices.
C) The cause of why total employment may decrease.
D) The effect of the government budget deficit on inflation.

7. Which of the following is NOT a factor of production?
A) the water used to cool a nuclear power plant.
B) the effort of farmers raising cattle.
C) the wages paid to workers.
D) the management skill of a small business owner.

8. When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of
A) a market mechanism.
B) macroeconomics.
C) opportunity cost.
D) a fallacy of composition.

9. Any point on a production possibilities frontier (PPF) itself is
A) efficient.
B) unattainable.
C) inefficient.
D) equitable.

13. When the price of a good falls, ceteris paribus, the income effect for a normal good implies that people buy
A) less of that good because the relative price of the good has fallen.
B) more of that good because the relative price of the good has risen.
C) less of that good because they cannot afford to buy all the things they previously bought.
D) more of that good because they can afford to buy more of all the things they previously bought.
14. Pizza is a normal good. When the price of a pizza decreases from $12 to $10,
A) the income effect means people buy less pizza.
B) the income effect means people buy more pizza.
C) the quantity demanded of pizza will not change.
D) None of the above answers is correct.

15. The ABC Music club charges a price of $16 for a CD and $8 for a cassette. Both CDs and cassettes are normal goods. If the ABC Music club increases the price of a CD to $18, everything else remaining the same,
A) the substitution effect induces club members to buy more cassettes and fewer CDs.
B) the income effect induces club members to buy fewer CDs.
C) the substitution effect induces club members to buy more CDs and fewer cassettes.
D) Both answers A and B are correct.

16. When supply and demand both increase, the
A) quantity definitely decreases.
B) quantity definitely increases.
C) price definitely increases.
D) price definitely decreases.

17. If a technological improvement takes place in the computer industry, then the equilibrium price of a computer will ____ and the equilibrium quantity will ____.
A) fall; increase.
B) fall; decrease.
C) rise; increase.
D) rise; decrease.

18. A President of the United States promises to simultaneously produce more defense goods without any decreases in the production of other goods. This promise can be valid
A) if the United States is producing at a point on its production possibilities frontier.
B) if the United States is producing at a point inside its production possibilities frontier.
C) if the United States is producing at a point beyond its production possibilities frontier.
D) only if the production possibilities frontier shifts rightward.

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What can be concluded if the demand curve for product B shifts to the right as the price of product A declines?

Asked by Skimind, Last updated: Sep 26, 2022

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What can we conclude if the demand curve for product A goes shifting to the right as the price of product B decreases?

F. Ray

What can we conclude if the demand curve for product A goes shifting to the right as the price of product B decreases?

F. Ray, Student, Kansas City

Answered Dec 05, 2018

If the price of product A drops and the demand curve of product B shifts right, then it can easily be concluded that products A and B are complementary products.

When a curve shifts right, then there is less demand for it when another product is at a certain price point. If product A is just as good as product B and costs less, then more people are going to buy product A. Product B’s demand will shift right on a demand curve.

If product A’s price went up, then the curve for B would shift left instead of right. Especially if the two products are more or less the same and are complementary goods. That’s all it means, really.

What can we conclude if the demand curve for product A goes shifting to the right as the price of product B decreases?

John Smith

What can we conclude if the demand curve for product A goes shifting to the right as the price of product B decreases?

A and B are complementary goods.

What happens when demand curve shift to the right?

Demand Curve Shifts Right The curve shifts to the right if the determinant causes demand to increase. This means more of the good or service are demanded even though there's no change in price. When the economy is booming, buyers' incomes will rise. They'll buy more of everything, even though the price hasn't changed.

What will happen if your demand curve shifts to the left or to the right?

Leftward Shift in Demand Curve This means the demand changes independently of the price. If the demand curve shifts to the right, consumers want to buy higher quantities for the same amount of money.

What happens to price and quantity when the demand curve shifts to the right?

Note that the supply curve does not shift but a lower quantity is supplied due to a decrease in the price. If the demand curve shifts right, there is a greater quantity demanded at each price, the newly created shortage at the original price will drive the market to a higher equilibrium price and quantity.

What can cause the supply curve for a product to shift to the right?

A technological improvement that reduces costs of production will shift supply to the right, causing a greater quantity to be produced at any given price.