Match List I with List II List I

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Match List I with List II

List I	List II
A. Nominal goods	I. These goods are consumed together
B. Inferior goods	II. Demand for the good decreases as income of the consumer increases
C. Substitute goods	III. These goods are used in place of each other
D. Complementary goods	IV. Demand for the good increases as income of consumer increases

Choose the correct answer from the options given below :

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is option (3) : A-IV, B-II, C-III, D-I

List I	List II
A. Nominal goods	IV. Demand for the good increases as income of consumer increases
B. Inferior goods	II. Demand for the good decreases as income of the consumer increases
C. Substitute goods	III. These goods are used in place of each other
D. Complementary goods	I. These goods are consumed together

Let's break down the matches :

A-IV : Normal goods have a direct relationship with income; as income increases, demand for normal goods increases.

B-II : Inferior goods have an inverse relationship with income; as income increases, demand for inferior goods decreases.

C- III : Substitute goods are used in place of each other, so they are consumed together.

D-I : Complementary goods are consumed together; the demand for one is related to the demand for the other.