E-readers and e-books are complementary goods. The price of e-readers falls while the price of e-books rises. How would a demand diagram for e-books show these changes?
Cheaper e-readers move the e-book demand curve to the left, while the e-book price rise produces a contraction on the relocated curve
The demand curve is redrawn to the left and the e-book price increase is marked as an extension along the redrawn curve
A new demand curve is drawn to the right, with the higher e-book price shown as a contraction along this shifted curve
Demand for e-books is placed on a curve further to the right, with an extension on that curve representing their higher price
82 exam-style questions on OCR GCSE Economics 2.2 Demand, covering 2.2.1 What is demand, 2.2.2 Draw a demand curve using data, 2.2.3 Explain a demand curve, 2.2.4 Shifts and movements of the demand curve, 2.2.5 Causes and consequences of demand changes, 2.2.6 Price elasticity of demand, 2.2.7 Draw demand curves of different elasticity, and 2.2.8 Importance of price elasticity of demand. Each one has a worked solution and a mark scheme showing where the marks go.