Tea and coffee are substitutes, and tea and sugar are complements. Match each change in List-I with its effect on the demand for tea in List-II.
| List-I | List-II | ||
|---|---|---|---|
| (A) | Price of coffee rises | (I) | Movement up along the demand curve for tea |
| (B) | Price of sugar rises | (II) | Movement down along the demand curve for tea |
| (C) | Price of tea falls | (III) | Demand curve for tea shifts leftward |
| (D) | Price of tea rises | (IV) | Demand curve for tea shifts rightward |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
A change in the price of tea itself moves the buyer along the tea demand curve. A change in the price of a related good shifts the curve.
| List-I | List-II | Reason |
|---|---|---|
| (A) Price of coffee rises | (IV) Demand curve for tea shifts rightward | Coffee is a substitute; buyers move to tea at every price. |
| (B) Price of sugar rises | (III) Demand curve for tea shifts leftward | Sugar is a complement; dearer sugar cuts tea demand at every price. |
| (C) Price of tea falls | (II) Movement down along the demand curve for tea | Own price falls: more is bought on the same curve. |
| (D) Price of tea rises | (I) Movement up along the demand curve for tea | Own price rises: less is bought on the same curve. |
NCERT (2026-27): “2.4.5 Shifts in the Demand Curve … Given the consumer’s income and her preferences, if the price of a related good changes, the demand for a good at each level of its price changes, and hence, there is a shift in the demand curve. If there is an increase in the price of a substitute good, the demand curve shifts rightward. On the other hand, if there is an increase in the price of a complementary good, the demand curve shifts leftward. …” “2.4.6 Movements along the Demand Curve and Shifts in the Demand Curve … At higher prices, the demand is less, and at lower prices, the demand is more. Thus, any change in the price leads to movements along the demand curve. …” |