Right ward shift in demand curve for breakfast cereal.
Concept Introduction:
When the demand for a particular good or service increases, the demand curve shifts towards the right implying an increase in demand. This could be either due to a rise in income, a rise in the substitute
Substitute goods are those which are easily replaced and cannot be distinguished from its substitute. Example of the same may be Coca cola and Pepsi. An increase in the price of coke results in increase in demand for Pepsi.
Complementary goods on the other hand are goods which are inter-related with another product and can be used with another product. E.g. petrol and car. A rise in the price of petrol will reduce the demand for petrol cars.
Want to see the full answer?
Check out a sample textbook solutionChapter 3 Solutions
Economics Today: The Micro View Plus Mylab Economics With Pearson Etext -- Access Card Package (19th Edition)
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education