A Level Economics (9708)•9708/12/O/N/20

Explanation
Demand shifters vs. supply shifters Steps:
- Recall that the demand curve shifts from changes in non-price factors like prices of related goods, income, tastes, or buyer numbers.
- The supply curve shifts from changes in production costs, technology, or seller numbers.
- Evaluate A: Lower complement price boosts demand for the product, shifting demand right.
- Evaluate B: Higher labor costs raise production expenses, shifting supply left but leaving demand unchanged.
- Evaluate C and D: Both involve related goods or alternatives, directly shifting demand. Why B is correct:
- Production cost changes (like labor) alter the supply curve per the law of supply, without impacting demand determinants or the demand curve's position. Why the others are wrong:
- A: Immediately shifts demand right as complements become cheaper, increasing joint consumption.
- C: Introduces more substitutes, shifting demand left as buyers have new options.
- D: Raises substitute price, shifting demand right as buyers switch to this product.
Final answer: B
Topic: Demand and supply curves
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