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A reduction in the price of digital cameras will:

Answers:
A.
shift the demand curve for digital cameras to the left.

B.
cause the demand curve for digital cameras to the right.

C.
shift the demand curve for memory cards to the left.

D.
shift the demand curve for memory cards to the right.

User Belloc
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1 Answer

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Final answer:

A reduction in the price of digital cameras will cause the demand curve for digital cameras to shift to the right, due to increased quantity demanded at every price level. It could also cause an increase in demand for complementary goods such as memory cards.

Step-by-step explanation:

A reduction in the price of digital cameras will most likely have a positive effect on demand. According to economic principles, when the price of a product decreases, the quantity demanded typically increases if other factors remain constant.

This increase in demand, due to the reduction in price, would lead to a rightward shift in the demand curve for digital cameras.

Therefore, the correct answer would be: B. cause the demand curve for digital cameras to move to the right.

Additionally, because digital cameras and memory cards are complementary goods (memory cards are used with digital cameras), a decrease in the price of digital cameras could also lead to an increased demand for memory cards, potentially causing the demand curve for memory cards to shift to the right as well (answer D).

User JWP
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