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: Check each statement.
- (A) Correct → Complementary goods are consumed together (e.g., tea and sugar).
- (B) Incorrect → Market demand is obtained by horizontal summation, not vertical.
- (C) Correct → Price elasticity measures responsiveness of demand to price change.
- (D) Incorrect → Preference increase shifts demand curve rightward, not leftward.
Step 2: Eliminate wrong options.
Only (A) and (C) are correct. (B) is wrong because of the word “vertical.” (D) is wrong because demand would shift rightward.
Step 3: Conclusion.
Hence, the correct option is (2): (A), (B), (C) only.
Final Answer: \[ \boxed{(A), (B), (C)} \]