Match the items of List - I with those of List - II and indicate the correct code : List-IList-II (a)…
Matching the types of goods with their elasticity characteristics: (a) Substitute Goods have (iii) Positive Cross Elasticity of demand; (b) Complementary Goods have (i)…
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Match the items of List - I with those of List - II and indicate the correct code :
| List-I | List-II |
|---|---|
| (a) Substitute Goods | (i) Negative Cross Elasticity |
| (b) Complementary Goods | (ii) Low Price Elasticity |
| (c) Giffen Goods | (iii) Positive Cross Elasticity |
| (d) High Income Group Consumption Goods | (iv) Positive Price Elasticity |
Answer and explanation
Correct answer B
Matching the types of goods with their elasticity characteristics: (a) Substitute Goods have (iii) Positive Cross Elasticity of demand; (b) Complementary Goods have (i) Negative Cross Elasticity of demand; (c) Giffen Goods exhibit an exceptional upward-sloping demand curve with (iv) Positive Price Elasticity; and (d) High Income Group Consumption Goods have (ii) Low Price Elasticity because wealthy consumers are relatively insensitive to price changes.
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UGC NET Commerce