Question

The supply and demand curves reflect the availability and cost of a new gaming system. The producer announces that the new system will be compatible with existing games under the same brand. Which change will most likely occur to the graph?,

Answer 1

With the new system being able to play pre existing games, that will probably be an incentive for people to want it. I'm sure it will be in high demand, causing the availability to be lowered significantly. Thus the graph should show a spike in the price of the new device. There should also be a decline in availability.

Answer 2

The demand curve will shift to the right, increasing the market price.

Step-by-step explanation:

When the demand curve shifts to the right, that means that the total demand will increase and the market price of the product or service will also increase at every level. The demand curve shifts to the right when consumers' income rises, the price of substitute goods rises, or the option that applies here, the price of complementary goods or services decrease.

Since the new gaming system is compatible with existing games, the price of complementary goods has actually decreased since you can use existing games that you have already purchased with the new system.