-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.

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