Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Arrange the following statements related to the change in demand for normal good.

(A) The consumer's income, increases.
(B) Given the prices of other goods and the preferences of the consumer,
(C) The demand curve shifts rightward.
(D) The demand for the normal good at given price changes.

Choose the correct answer from the options given below:

Options:

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer:

(B), (A), (D), (C)

Explanation:

The correct answer is Option (3) → (B), (A), (D), (C)

  • (B) Given the prices of other goods and the preferences of the consumer, → Sets the condition that other factors remain constant (ceteris paribus).

  • (A) The consumer's income increases. → This is the cause — higher income affects demand for normal goods.

  • (D) The demand for the normal good at given price changes.→ As a result of the income increase, the demand rises.

  • (C) The demand curve shifts rightward. → This shows the effect — an increase in demand causes a rightward shift of the demand curve.