Match what happens to the demand curve as the price of related goods change. PromptsAnswersQuestion 7Prompt1The price of a substitute increasesthe demand curve shifts right.[input]Option 2, selected. Question 7Prompt2the price of a complementary good increases.the demand curve shifts left.[input]Option 1, selected.

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We are asked to match what happens to the demand curve when the price of related goods changes.
First statement: 'The price of a substitute increases, the demand curve shifts right.' When substitutes become more expensive relative to the original good, consumers switch to the original good, increasing its quantity demanded at each price. This shifts the demand curve to the right.
Second statement: 'The price of a complementary good increases, the demand curve shifts left.' Complements are typically consumed together; if the price of a complement rises, the combined use of the two goods falls, reducing the demand for the original good. This shifts the demand curve to the left.
Thus, each described effect matches the standard type of relationship:
- Substitute price up → demand for the original good shifts right (increase in demand).
- Complement price up → demand for the original good shifts left (decrease in demand).
If you were evaluating which statement belongs to which prompt in a matching exercise, both relationships are correctly stated, aligning the direction of the shift with the price change of the related good.

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

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