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

question 461

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:

Shares Outstanding

Shares Outstanding refer to all shares currently owned by shareholders, company insiders, and investors in the public domain, representing the total equity ownership of a company.

Reverse Stock Split

A process by which a company reduces the total number of its outstanding shares to increase the per share price without changing the company's overall market capitalization.

Stock Split

An action by a corporation in which it splits its current shares into more shares, aiming to increase the trading liquidity of those shares.

Market Price

Market price is the current price at which an asset or service can be bought or sold in an open and competitive market.