Match the following:

1-B, 2-A, 3-D, 4-C

The correct answer is Option 2: 1-B, 2-A, 3-D, 4-C

1. Rise in price of petrol causing fall in demand of car (B. Complementary goods): This scenario describes complementary goods. When the price of one good (petrol) increases, the demand for the other good (cars) typically decreases because they are used together. In case of complementary goods, rise in price of one good cause decrease in demand of the complementary good.

2. Income increases, demand decreases (A. Inferior good): This describes an inferior good. Inferior goods have a negative income effect. With increase in income the demand for the inferior commodity declines and vice-versa.

3. Extension in demand (D. Movement along the demand curve): An extension of demand can be seen as a movement along the demand curve. This movement would be caused by a change in the price of the product in question.

4. Increase in demand (C.Shift in the demand curve): An increase in demand can be seen as a rightward shift of the demand curve.This shift can be caused by a number of factors. For example a shift in demand for a product because of a change in the price of a substitute good. This could be when the price of mutton increases, we will see a rightward shift, increase in the demand for chicken.