Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Quick Check Multiple Choice: 3

Answer

d. The demand curve shifts to the right

Work Step by Step

In terms of related goods, there are two types of goods: complements and substitutes. Complements, such as peanut butter and jelly, are goods for which an increase in price leads to a decrease in demand in the other, and vice versa. Substitutes are goods for which an increase in price leads to an increase in demand in the other, and vice versa. As the price of DVDs increases, consumers will begin purchasing more movie tickets, which will now seem cheaper relative to the new price of DVDs. Since the demand for movie tickets increases, the demand curve for movie tickets will shift to the right.
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