Goods X and Y are perfect complements.If the price of good Y falls,what will the substitution effect acting by itself do
A)It will cause consumers to buy more of good Y and less of good X.
B)It will cause consumers to buy more of good X and less of good Y.
C)It will not affect the amount of goods X and Y that consumers buy.
D)It will affect the amount of goods X and Y that consumers buy, but in an unpredictable way.

Question

Quizplus · Accepted Answer

For perfect complements, goods are consumed in fixed proportions, so a change in the price of one good does not lead to a substitution effect.

Goods X and Y Are Perfect Complements