Which of the following statements about shifts of a consumer’s demand curve for a good are correct?
(A) A fall in the price of a complementary good shifts it rightward.
(B) A fall in the price of the good itself shifts it rightward.
(C) A rise in the price of a complementary good shifts it leftward.
(D) An unfavourable change in the consumer’s preferences shifts it leftward.
(E) A rise in income shifts it rightward if the good is inferior.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (C) and (D) only
A change in the good’s own price moves the consumer along the demand curve. Changes in other things, such as prices of related goods, income and tastes, shift it.
(A) A fall in the price of a complementary good shifts it rightward. — Correct. Cheaper sugar raises the demand for tea at every price.
(B) A fall in the price of the good itself shifts it rightward. — Incorrect. A change in its own price causes a movement along the curve.
(C) A rise in the price of a complementary good shifts it leftward. — Correct. Costlier sugar lowers the demand for tea at every price.
(D) An unfavourable change in the consumer’s preferences shifts it leftward. — Correct. She wants less of the good at each price.
(E) A rise in income shifts it rightward if the good is inferior. — Incorrect. For an inferior good, a rise in income shifts the curve leftward.
NCERT (2026-27): “2.4.4 Substitutes and Complements … Since tea and sugar are used together, an increase in the price of sugar is likely to decrease the demand for tea and a decrease in the price of sugar is likely to increase the demand for tea. …” “2.4.5 Shifts in the Demand Curve … For normal goods, the demand curve shifts rightward and for inferior goods, the demand curve shifts leftward. … On the other hand, if there is an increase in the price of a complementary good, the demand curve shifts leftward. … On the other hand, the demand curve shifts leftward due to an unfavourable change in the preferences of the consumer. …” “2.4.6 Movements along the Demand Curve and Shifts in the Demand Curve … Thus, any change in the price leads to movements along the demand curve. …” |