Question

Match List-I with List-II
List-I (Elasticity): (A) Cross elasticity positive (B) Cross elasticity negative (C) Income elasticity positive (D) Income elasticity negative
List-II (Type of Goods): (I) Superior goods (II) Inferior goods (III) Substitute goods (IV) Complements goods
Choose the correct answer from the options given below:

• A. (A), (II), (B), (III), (C), (I), (D), (IV)
• B. (A), (III), (B), (IV), (C), (I), (D), (II)
• C. (A), (II), (B), (I), (C), (IV), (D), (III)
• D. (A), (III), (B), (I), (C), (II), (D), (IV)

Hint:

Distinguish behaviour-based conduct from outcome-based performance measures.

Answer 1

The Correct Option is B

A positive cross elasticity of demand means demand for one good rises when the price of another good rises, which is the defining trait of substitute goods (III). A negative cross elasticity means demand falls when the other good's price rises, the defining trait of complement goods (IV).
A positive income elasticity means demand rises as income rises, characteristic of superior goods (I), while a negative income elasticity means demand falls as income rises, characteristic of inferior goods (II).
Matching these gives (A)-III, (B)-IV, (C)-I, (D)-II, which corresponds to option 2.