Answer:
C) III only
Explanation:
The correct option is - C) III only
Reason -
A complementary good is one used in conjunction with another good or service. · Such a good may have little value without its complement.
If the price of complementary goods increases, demand decreases.
But in the graph , there is an increase of demand. So, option (I) is incorrect.
In option (II),
Production cost increase, supply wants to sell its product at high price so, demand decrease.
So, option (II) is incorrect.
In option (III)
Substitute goods are identical, similar, or comparable to another product, in the eyes of the consumer. Substitute goods can either fully or partly satisfy the same needs of the customers.
So, option (III) is correct.
