Attempt this previous-year question. The correct option stays hidden until you choose.
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 statements given above is/are correct?
Pick an option to check yourself.
• Correct Answer: A
• Higher substitute price shifts demand to the good; lower own price raises quantity demanded per Law of Demand.
• Complement price hikes reduce joint demand; higher income reduces demand for inferior goods.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
GyanGram