Question

Indicate whether the following changes would cause a shift in the demand curve for Product A and, if so, the direction of the shift.
Change Demand curve shift? Direction of shift?
Increase in price of complementary product Yes or No Increase, decrease or N/A
Increase in the price of the Product A Yes or No Increase, decrease or N/A
Launch of effective advertising campaign for Product Yes or No Increase, decrease or N/A

Answer 1

Answer:

yes decrease

No N/A

Yes, Increase

Explanation:

A complementary good is a good that is consumed together. If the price of the complementary good increases, the quantity demanded of the good would decrease. this would lead to a decrease in demand for product A.

an increase in the price of product A, would increase the quantity demanded. an increase in quantity demanded leads to a movement along the demand curve and not a shift of the demand curve

An effective advertising campaign would increase the visibility of the product and increase the demand for the product. an increase in demand leads to an outward shift of the demand curve.