the current position of the demand curve is Upper D 1
,
and the price of a wireless earbud is $4. If there is a decrease
in the price of tablet devices that are complements to wireless earbuds,
which way will the demand curve shift? Will the quantity of wireless earbuds demanded increase or decrease?
If there is a decrease in the price of tablet devices, which are complements to wireless earbuds, the demand for wireless earbuds will increase. As a result, the demand curve will shift to the right, indicating a higher quantity of wireless earbuds demanded at each price level.
The decrease in the price of tablet devices that are complements to wireless earbuds causes a---
A. rightward
B.leftward
---shift in the demand for wireless earbuds,
from Upper D 1
to Upper D 2
.
At the price of $4 per wireless earbud,
the quantity of wireless earbuds demanded
will increase.
right or left ward shift
The decrease in the price of tablet devices that are complements to wireless earbuds causes a rightward shift in the demand for wireless earbuds.
If the price of tablet devices that are complements to wireless earbuds decreases, the demand for wireless earbuds is likely to increase. This would cause the demand curve to shift to the right. The shift would indicate an increase in the quantity of wireless earbuds demanded at each price level.
To determine the impact of a decrease in the price of tablet devices on the demand for wireless earbuds, we need to understand the concept of complements and their effect on demand.
Complementary goods are products that are typically used together. In this case, tablet devices and wireless earbuds are complements since they are often used together for activities like watching videos or listening to music.
When the price of a complementary good decreases, it leads to an increase in the demand for the related product. In this scenario, if the price of tablet devices decreases, it will likely result in an increase in the demand for wireless earbuds.
As for the direction of the demand curve, we need to know the initial position of the curve. Since you mentioned that the current position of the demand curve is D1, we can assume this as the starting point.
When the demand curve shifts, it means that the quantity demanded changes at every price level. In this case, with a decrease in the price of tablet devices, the demand for wireless earbuds will likely increase. Consequently, the demand curve will shift to the right (from D1 to D2). This indicates an expansion in demand.
Therefore, the quantity of wireless earbuds demanded will increase due to the decrease in the price of tablet devices, resulting in the rightward shift of the demand curve.