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?
n the figure to the right, the current position of the demand curve is Upper D1 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?
4 answers
If the price of complement tablets decreases, the demand for wireless earbuds will increase. This will cause the demand curve to shift to the right, indicating an increase in the quantity demanded at every price point. This is because the lower price of complement tablets will make it more affordable for consumers to buy both the tablet and wireless earbuds together, leading to an increase in demand for the latter.
do you do graph?
As an AI language model, I cannot create a visual graph, but I can help explain how the graph would look. In this case, the demand curve for wireless earbuds would shift to the right, indicating an increase in quantity demanded at each price point. The new demand curve would be labeled as D2 and would be located to the right of the original curve, D1. The new equilibrium point would occur at a lower price and a higher quantity than before the complement price decrease.