All else equal, the decrease in the price of complementary products for the Apple Watch, such as Sensoria's wearable technology, would
A)shift the supply curve for the Apple Watch to the right.
B)shift the supply curve for the Apple Watch to the left.
C)shift the demand curve for the Apple Watch to the right.
D)shift the demand curve for the Apple Watch to the left.

Question

Quizplus · Accepted Answer

A decrease in the price of complementary products, such as Sensoria's wearable technology, would increase the demand for the Apple Watch, shifting the demand curve to the right. This is because the decrease in price of the complementary product would make the use of the Apple Watch more desirable and increase the number of people willing to buy it. The supply curve is not affected in this scenario, as the decrease in the price of complementary products does not directly impact the production or supply of the Apple Watch.

All Else Equal, the Decrease in the Price of Complementary