Question

From the following statements given in Column I and Column II, choose the correct pair of statements.

Column I	Column II
A. Movement along the demand curve	1. Change in demand
B. Shift in demand curve	2. Change in quantity demanded
C. Normal goods	3. Negative income effect
D. Inferior goods	4. Positive income effect

Options

• A - 3, B - 4, C - 2, D - 1

• A - 3, B - 1, C - 4, D - 2

• A - 4, B - 2, C - 3, D - 1

• A - 2, B - 1, C - 4, D - 3

Answer 1

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

Explanation:

Column I	Column II
A. Movement along the demand curve	2. Change in quantity demanded
B. Shift in demand curve	1. Change in demand
C. Normal goods	4. Positive income effect
D. Inferior goods	3. Negative income effect