Match list I with List II.

Choose the correct answer from the options given below :

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

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

(A) Increase in price - will lead to upward movement along the demand curve : When the price of a good increases, assuming all else equal (ceteris paribus), the quantity demanded typically decreases. This is because higher prices reduce the purchasing power of consumers, making the good relatively more expensive compared to alternatives. Therefore, this results in a movement upwards along the demand curve.

(B) Decrease in price - will lead to downward movement along the demand curve :Conversely, when the price of a good decreases, assuming all else equal, the quantity demanded usually increases. Lower prices make the good more affordable and attractive to consumers compared to alternatives, resulting in a movement downwards along the demand curve.

(C) Increase in price of substitute goods- will lead to rightward shift in demand curve of normal goods : Substitute goods are alternatives that can replace each other. If the price of a substitute good increases, consumers may switch to the original good (assuming it's relatively cheaper), increasing the demand for the original good. This causes a rightward shift in the demand curve of the original good, indicating an increase in demand at each price level.

(D) Unfavourable taste & preference - will lead to leftward shift in demand curve :Changes in consumer preferences can affect demand. If there's a shift in preferences away from a particular good due to reasons like changing trends or new preferences, the demand for that good decreases, leading to a leftward shift in its demand curve. This indicates a decrease in demand at each price level.