Match List-I with List-II

Choose the correct answer from the options given below:

(A)-(III), (B)-(II), (C)-(I), (D)-(IV)

The correct answer is Option (4) → (A)-(III), (B)-(II), (C)-(I), (D)-(IV)

A) Leftward shift in both supply and demand → (III) Equilibrium quantity decreases. When both supply and demand decrease (shift left), the total quantity traded in the market must fall. Although the effect on price is ambiguous (depends on the relative shift), the equilibrium quantity definitely decreases. Hence, this match is correct.

(B) Rightward shift in both supply and demand → (II) Equilibrium quantity increases.  When both curves shift to the right, supply and demand increase, so more goods are exchanged in the market. While the effect on price is uncertain (depends on which curve shifts more), the equilibrium quantity increases for sure. So, this is a correct match.

(C) Equal percentage of increase in both demand and supply → (I) Equilibrium price remains unchanged. If supply and demand both increase by the same proportion, their effects on price cancel each other out, keeping the price constant. However, the equilibrium quantity increases. Since the question is only asking about price, this pair is correct.

(D) Supply shifts right and demand shifts left → (IV) Equilibrium quantity remains unchanged. If supply increases and demand decreases by the same magnitude, the increase in supply offsets the fall in demand, so quantity stays the same, but the price falls.