The correct answer is option (2) : (A)-(IV), (B)-(III), (C)-(II), (D),(I)
(A) Income increases, Demand increases: This is a characteristic of normal goods, as people tend to buy more of these goods as their income increases. Hence, it corresponds to (IV) Normal Goods.
(8) Income increases, Demand decreases: This is a characteristic of inferior goods, which are consumed less as income increases because consumers switch to superior alternatives. Hence, it corresponds to (III) Inferior Goods.
(C) Demand varies directly with the price of the related good: This indicates that the goods are substitutes for each other, as the increase in the price of one leads to an increase in demand for the other. Hence, it corresponds to (II) Substitute Goods.
(D) Goods consumed together : This indicates that the goods are complementary to each other, as they are consumed together. Hence, it corresponds to (I) Complementary Goods.
Based on the matches, the correct answer is (2) (A)-(IV), (B)-(III), (C)-(II), (D),(I) |
