ALIA BINT BAZEEL HERE WITH A DOUBT

Identify the correct pair of statements from the following column I and II.

Column I                                                                Column II

A. Income effect                          i. Effect on quantity demanded when
                                                           real income of the buyer changes-
                                                            owing to change in commodity price.
B. Substitution effect                  ii. Complete the demand for goods.
C. Normal goods                         iii. Decreases the demand when
                                                             Income rises.
D. Slope of demand curve          iv. Increases from left to right.

Alternatives:
a) A – i
b) B – ii
c) C – iii
d) D - iv

Dear Student,
Correct pair from the following given statement is:-
Income effect- Effect on quantity demanded when real income of the buyer changes owing to change in commodity price. 
Henceforth, Option A is the correct one.

​​​​​​​Regards

  • 0
What are you looking for?