What can be concluded if the demand curve for product B shifts to the - ProProfs Discuss

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

A. A and B are substitute goods.
B. A is a normal good and B is an inferior good.
C. A is an inferior good and B is a normal good.
D. A and B are complementary goods.

This question is part of Macroeconomics Test One
Asked by Skimind, Last updated: May 24, 2020

#### F. Ray

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.

#### John Smith

John Smith

Answered Mar 01, 2017

A and B are complementary goods.

Search for Google images
Select a recommended image