Golf clubs and golf balls are complements. If the price of golf clubs rises, what happens to the demand curve for golf balls?
AIt shifts to the right
BIt does not shift at all
CIt shifts to the left
DIt becomes perfectly horizontal
Answer & Solution
Correct answer: C. It shifts to the left
1. A higher price of golf clubs moves buyers along the golf club demand curve to a lower quantity demanded of clubs.
2. Because clubs and balls are used together, fewer clubs bought means less desire for balls at every price.
3. That lower quantity demanded of balls at every price is a leftward shift of the ball demand curve.
4. This is a shift caused by a related good's price, not a movement along the ball demand curve itself.
_Source: OpenStax Principles of Macroeconomics for AP Courses (CC BY 4.0), Ch 3 "Demand and Supply", section 3.2 | Shifts in Demand and Supply for Goods and Services_
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