The correct answer is Option (1) → (A) and (C) only
(A) Goods which are consumed together are called complementary goods. (Correct). Example: Tea and sugar, or printer and ink..
(B) The market demand curve can be derived as a vertical summation of the individual demand curves. (Incorrect). Market demand is derived by horizontal summation, not vertical. We add quantities demanded at each price level, not prices at each quantity.
(C) Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in its price. (Correct). This is the standard definition of price elasticity of demand.
(D) If the consumer's preferences change in favor of a good, the demand curve for such a good shifts leftward. (Incorrect). A change in consumer preferences in favor of a good leads to an increase in demand, which is represented by a shift of the demand curve to the right. A leftward shift indicates a decrease in demand. |
