Question

Identify the correct pair of items from the following Columns I and II:

Column I	Column II
(1) Budget Line	(a) Normal goods
(2) Bajra	(b) Inferior goods
(3) Consumer equilibrium	(c) Luxurious goods
(4) Elastic Demand	(d) M = Px*x + py*y

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

2 - (b)

Explanation:

1. Budget Line = P = Px.x + Py.y
2. Bajra = Inferior goods
3. Consumer equilibrium: Price ceiling
4. Elastic Demand: Luxurious goods