Answer:
The correct answer is option D.
Explanation:
If there are two products A and B respectively. A rightward shift in the demand curve of product B indicates that the demand for B is rising while its price remains the same.
A decline in the price of product A causes its quantity demanded to increase at the same time the demand for product B also increases, this indicates that the two goods are complements.
If the demand curve of product B shifts to the right when price of Product A declines we can conclude that A and B are good and B is an inferior good. complementary goods.
Demand curve show the price-quantity relationship of a good. As the price of a good increases, its quantity demanded decreases and vice-versa.
Certain factors that affect the demand of a commodity other than price are:
Price of substitute goods,
Price of complementary goods,
Income of the consumer, and so on.
Complementary goods are those that are consumed in combination with one another. As the price of a complementary good declines, the demand for other good increases and hence the demand curve shifts to the right.
Rightward shift in demand curve depicts the increase in demand.
When the price of product A declines, the demand for B increases. Hence we can conclude that A and B are complementary goods.
Therefore the correct statement is D.
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