20. Goods X and Y are perfect complements. If the price of good Y falls, what...

Question

Question

20. Goods X and Y are perfect complements. If the price of good Y falls, what will be the consequences on the substitution ef

Answer 1

Answer #1

Ans) the correct option is 1) it will not affect the amount of goods X and Y that consumers buy.

When the two goods are complements, fall in price of a good has no substitution effect but it has income effect.

Answer 2

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