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

Answer 1

Demand will shift right, raising the market price.

Step-by-step explanation:

Answer 2

Demand will shift right, raising the market price.

Step-by-step explanation:

Given that the new gaming system is compatible with existing games, this implies that the total demand will increase and the market price of the new system will also increase at every level. At the same time, the price of a complementary product will decrease, since one can use existing games that have already been purchased with the new system.

Hence, in this case, the correct answer is Demand will shift right, raising the market price.