Match List I with List II
| List I | List II | ||
| A. | Income increase - Quantity of Goods increases | I. | Substitute Good |
| B. | Income increase - Quantity of Goods decreases | II. | Normal Good |
| C. | Increase in price, other good Quantity increases | III. | Complementary Good |
| D. | Goods consumed together | IV. | Inferior Good |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : A-II, B-IV, C-I, D-III
- A. Income increase - Quantity of Goods increases (normal Good) : when income increases, the quantity of normal goods typically increases.
- B. Income increase - Quantity of Goods decreases (Inferior Good):For inferior goods, when income increases, the quantity consumed may decrease.
- C. Increase in price, other good Quantity increases (Substitute Good): When the price of one good increases, the quantity demanded for its substitute may increase.
- D. Goods consumed together (Complementary Good):Complementary goods are consumed together, and and, an increase in the price or one may lead to a decrease in the quantity demanded for the other.