UPSC PYQPrelims 2021

Civil Services Examination · प्रश्न 4

Consider the following statements: Other things remaining unchanged, market demand for a good might increase if 1. price of its substitute increases 2. price of its complement increases 3. the good is an inferior good and income of the consumers increases 4. its price falls Which of the above statements are correct?

  1. 1 and 4 only
  2. 2, 3 and 4
  3. 1, 3 and 4
  4. 1, 2 and 3
उत्तर देखें और व्याख्या

उत्तर: (A) 1 and 4 only

व्याख्या

A costlier substitute and a fall in own price raise demand. A costlier complement lowers demand, and demand for an inferior good falls when income rises.