If goods X and Y are perfect complements,then if the price of good Y falls,changes in the amount of goods X and Y purchased are due
A)strictly to the substitution effect.
B)strictly to the income effect.
C)to both the income and substitution effects
D)strictly to the complement effect.

Question

Quizplus · Accepted Answer

When goods are perfect complements, the substitution effect is absent because the goods are consumed in fixed proportions. Therefore, any change in consumption due to a price change is attributed to the income effect.

If Goods X and Y Are Perfect Complements,then If the Price