Asked by Waleed Abdullah on Apr 29, 2024
Verified
If steak and potatoes are complements,when the price of steak goes up,the demand curve for potatoes:
A) shifts to the right.
B) shifts to the left.
C) stays the same.
D) shifts to the right and then moves back.
Complements
Goods that are consumed together because the use of one increases the value of the other, often seen in products that are used in conjunction.
Demand Curve
A graphical representation of the relationship between the price of a good and the quantity demanded by consumers.
- Acquire knowledge on the role of complements and substitutes in affecting demand.
Verified Answer
MB
Maurice BruceMay 01, 2024
Final Answer :
B
Explanation :
Since steak and potatoes are complements, they are consumed together. If the price of steak goes up, the demand for steak will decrease, causing the demand curve for potatoes to shift to the left because people will buy fewer potatoes to go with their more expensive steak.
Learning Objectives
- Acquire knowledge on the role of complements and substitutes in affecting demand.