Question : The demand curve will shift forward when ______.
Option 1: price of complementary goods fall
Option 2: price of substitute goods decreases
Option 3: income of consumer fall
Option 4: price of complement goods increases
Correct Answer: price of complementary goods fall
Solution : The correct answer is the price of complementary goods falls .
When the price of a complementary good falls, it makes the combination of two goods more affordable and attractive for consumers.
For Example:
Imagine you're in the market for a new smartphone, and its complementary good is a protective case. If the price of protective cases drops, people are more likely to buy them. When they buy more cases, they're also more inclined to buy the corresponding smartphones because they can protect them at a lower cost.
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