Match what happens to the demand curve as the price of related goods change. PromptsAnswersQuestion 7Prompt1The price of a substitute increasesSelect match[input] Question 7Prompt2the price of a complementary good increases.Select match[input]

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BlackTom AI · Accepted Answer

To analyze the prompt, we need to link changes in the prices of related goods to the direction of the demand curve for the original good.
Option A: 'The price of a substitute increases' — When substitutes become more expensive, consumers switch to the relatively cheaper original good, increasing its quantity demanded at each price. This causes the demand curve for the original good to shift to the right (increase in demand).
Option B: 'The price of a complementary good increases' — When the price of a complement rises, the associated good becomes less attractive to purchase together, reducing the quantity demanded of the original good at each price. This leads to a leftward shift of the original good’s demand curve (decrease in demand).
In summary, price changes in related goods influence demand direction: higher substitute prices boost demand for the original good (rightward shift), while higher complement prices reduce demand for the original good (leftward shift).

Fall 2025 Principles of Macroeconomics (ECONO-2201-NET10) Chapter 3 Assignment 1 of 2 Fall 2025 Principles of Macroeconomics (ECONO-2201-NET10) Chapter 3 Assignment 1 of 2

Match what happens to the demand curve as the price of related goods change. PromptsAnswersQuestion 7Prompt1The price of a substitute increasesSelect match[input] Question 7Prompt2the price of a complementary good increases.Select match[input]

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