Match List-I with List-II:

Choose the correct answer from the options given below:

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

The correct answer is Option (2) → (A)-(I), (B)-(III), (C)-(II), (D)-(IV)

Here's the matching of List-I (Characteristic) with List-II (Implication):

(A) Equilibrium - (I) Plans of all the consumers and firms in the market match: In an equilibrium state, there is no excess supply or demand. The quantity of goods and services supplied by firms exactly matches the quantity demanded by consumers at the prevailing market price. This implies that both consumers and firms are satisfied with their decisions.

(B) Excess supply - (III) Supply is greater than market demand: Excess supply occurs when the quantity of goods and services supplied by firms is greater than the quantity demanded by consumers at the prevailing market price. This situation leads to downward pressure on prices as firms compete to sell their excess inventory.

(C) Inferior good - (II) Demand decreases with an increase in income: An inferior good is a good for which the quantity demanded decreases as consumer income rises. As people's income increases, they tend to substitute inferior goods with superior goods that they perceive as higher quality or more desirable.

(D) Price ceiling - (IV) Imposition of upper limit by government: A price ceiling is a government-imposed maximum price that can be charged for a good or service. Price ceilings are typically implemented to control prices and make goods more affordable for consumers.