Question

question 11
1 pts
suppose we are analyzing the market for hot chocolate. if the price of whipped cream falls (assume whipped cream and hot chocolate are complements), the...
demand curve of hot chocolate will shift to the left
demand curve of hot chocolate will shift to the right
supply curve of hot chocolate will shift to the right
supply curve of hot chocolate will shift to the left

Explanation:

Complements are goods that are consumed together. When the price of a complement (whipped cream) falls, the demand for the related good (hot chocolate) increases because people will buy more of both as they are used together. An increase in demand (not supply) shifts the demand curve to the right. The supply curve is affected by factors like production costs, technology, etc., not the price of a complement. So the demand curve for hot chocolate shifts right.

Answer:

B. Demand curve of hot chocolate will shift to the right