O Levels Economics (2281)•2281/12/M/J/22

Explanation
Rightward Demand Shift from Complement Price Change
Steps:
- A rightward demand curve shift means increased demand at every price, caused by non-price factors like related goods' prices.
- Complements are goods used together; a price drop in one boosts demand for the other.
- Substitutes compete; a price drop in one reduces demand for the alternative.
- The good's own price change causes movement along the curve, not a shift.
Why B is correct:
- A decrease in a complement good's price lowers the total cost of joint consumption, increasing demand for the original good per the law of demand for related goods.
Why the others are wrong:
- A: Decreased income reduces purchasing power for normal goods, shifting demand left.
- C: Decreased substitute price makes the alternative more attractive, shifting demand left.
- D: Decreased price of the good causes a movement down along the existing demand curve.
Final answer: B
Topic: Demand
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