Question

Construction of new homes decreases. This will cause the demand curve to shift ___________ for complimentary goods used to build the homes such as timber.

Answer 1

Answer:

to the left

Explanation:

When the construction of new homes decreases, the demand curve for complimentary goods used to build homes shift to the left as a result of a decrease in their demands.

The demand curve is a graph that shows the demand for a product in relation to the price of the product at a specific point in time. When the demand for a product increases, the curve shifts to the right, and when it decreases, the curve shifts to the left.

Complementary goods are goods that are required in conjunction with other goods or services. For example, timbers are required for buildings, hence, they timbers serve as complementary goods to buildings.

When the construction of new homes decreases, it means there will be less demands for timbers and as such, the demand curve will shift to the left.