What does not shift the supply curve of the product A to the right?

A) A rise in the price of A

B) An increase in the price of H, a complement in A

C) A fall in the price of H, a substitute of A

Solutions

Expert Solution

A rise in the price of A

When demand of a commodity changes due to change in any factor like price of substitute goods, price of complement goods, income of the consumers, tastes and preferences etc. other than the own price of the commodity, it is known as shift in demand. It means that the shift in demand happens because of other factor and not because of the price of own good.

Rahul Sunny answered 1 year ago

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