Question

Find the correct statement/statements. (A) Goods which are consumed together are called complementary goods.
(B) The market demand curve can be derived as a vertical summation of the individual demand curves.
(C) Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in its price.
(D) If the consumer’s preferences change in favor of a good, the demand curve for such a good shifts leftward.

• A. (A) and (C) only
• B. (A), (B) and (C) only
• C. (A) and (D) only
• D. (B), (C) and (D) only

Hint:

- Market demand = horizontal summation of individual demand curves.
- Rightward shift = increase in demand (favorable preferences).
- Leftward shift = decrease in demand (unfavorable preferences).

Answer 1

The Correct Option is B

Step 1: Evaluate each statement.
- (A) Correct → Complementary goods are used jointly (e.g., tea and sugar).
- (B) Incorrect → Market demand results from horizontal summation, not vertical.
- (C) Correct → Price elasticity quantifies demand's sensitivity to price fluctuations.
- (D) Incorrect → An increase in preference shifts the demand curve rightward, not leftward.
Step 2: Discard incorrect options.
Statements (A) and (C) are correct. Statement (B) is incorrect due to the term “vertical.” Statement (D) is incorrect as demand shifts rightward.
Step 3: Finalize.
Therefore, option (2) is correct: (A), (B), (C) only.
Final Answer: \[\boxed{(A), (B), (C)}\]