Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Match List-I with List-II.

List-I List-II
(A) Tea and Coffee (I) Complementary goods
(B) Car and Fuel (II) Inferior goods
(C) Low grade cereal food (III) Substitute goods
(D) Good quality wheat (IV) Normal good

Choose the correct answer from the options given below :

Options:

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

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

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

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

Correct Answer:

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

Explanation:

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

List-I List-II
(A) Tea and Coffee (III) Substitute goods
(B) Car and Fuel (I) Complementary goods
(C) Low grade cereal food (II) Inferior goods
(D) Good quality wheat (IV) Normal good

(A) Tea and Coffee are Substitute goods .

(B) Car and Fuel are complementary as you need fuel to operate a car.

C) Low grade cereal food is often considered an inferior good because as income increases, people tend to switch to higher-quality foods.

(D) Good quality wheat is a normal good as demand for it tends to rise with an increase in income.