-In the Above Figure, If the Two Goods a and B

question 318

Multiple Choice

-In the above figure, if the two goods A and B, are complements, which of the following is true?

• A) The shift from D₀ to D₁ for good B leads to a shift from S₀ to S₁ for good A.
• B) The shift from S₀ to S₁ for good A leads to the shift from D₀ to D₁ for good B.
• C) The law of demand is violated in both markets.
• D) The cross elasticity of demand between them is positive.

---

Definitions:

Insolation Reflected

The portion of incoming solar radiation that is reflected back into the atmosphere by the Earth's surface or clouds.

Infrared Energy

Electromagnetic radiation with wavelengths longer than visible light but shorter than microwaves, perceived as heat.

Atmospheric

Pertaining to the Earth's atmosphere, it encompasses all the layers of gas surrounding the planet, crucial for weather and climate conditions.

Yearly Variations

Changes that occur on an annual basis in various environmental or climatic factors, such as temperature, precipitation, and day length.