Match the items of List-I with the items of List-II and choose the correct answer from the code given…
Income elasticity less than unity (but positive) (a) characterizes necessity/normal goods (iii); positive cross-price elasticity (b) indicates competitive/substitute goods…
Choose your answer
Match the items of List-I with the items of List-II and choose the correct answer from the code given below.
(a) Income elasticity less than unity — (i) Competitive goods
(b) Cross elasticity greater than zero — (ii) Inferior goods
(c) Cross elasticity less than zero — (iii) Necessity/Superior goods
(d) Income elasticity less than zero — (iv) Complementary goods
Answer and explanation
Correct answer D
Income elasticity less than unity (but positive) (a) characterizes necessity/normal goods (iii); positive cross-price elasticity (b) indicates competitive/substitute goods (i); negative cross-price elasticity (less than zero) (c) indicates complementary goods (iv); and negative income elasticity (less than zero) (d) defines inferior goods (ii).
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UGC NET Commerce