Anand consumes lesser units of good X when its price falls but more units of X when his income rises. Which of the following statements is true about good X.

Good X is both inferior and Giffen good for Anand.

The correct answer is Option (4) → Good X is both inferior and Giffen good for Anand.

Note: The given answer is as per NTA. However, there seems to be a mistake in the question as explained below:

a. The question combines two statements that cannot logically hold together. First, it says that Anand buys less of good X when its price falls. This is possible only in the case of a Giffen good. A Giffen good always has a strong negative income effect and must be an inferior good.

b. Second, it says that Anand buys more of good X when his income rises. This means the good behaves as a normal good because demand increases with income. 

c. A good cannot be both inferior and normal at the same time. For an inferior good, demand decreases when income rises, whereas for a normal good, demand increases when income rises. Since a Giffen good is necessarily inferior, the statement that demand rises with income directly contradicts the condition required for a Giffen good.

d. Therefore, the two conditions given in the question are mutually inconsistent. Hence, the answer cannot logically be Option (4), nor can it be any of the other options provided, as none of them correctly satisfy both conditions simultaneously.