[amp_mcq option1=”a-4, b-2, c-3, d-1″ option2=”a-2, b-1, c-4, d-3″ option3=”a-3, b-4, c-2, d-1″ option4=”a-1, b-2, c-3, d-4″ correct=”option4″]<\/p>\n
The correct answer is: D. a-1, b-2, c-3, d-4<\/p>\n
List-I | List-II
\n——- | ——–
\na. Non-price quantity relationships of demand | 1. Extension and contraction of demand
\nb. Income effect of a price rise greater than its substitution effect | 2. Giffen goods
\nc. Transitivity and consistency of choices | 3. Ordinal utility approach
\nd. Price quantity relationships of demand | 4. Increase and decrease in demand<\/p>\n
Explanation:<\/p>\n
a. Non-price quantity relationships of demand: This refers to the factors other than price that can affect the demand for a good or service. These factors include income, taste, and expectations.<\/p>\n
b. Income effect of a price rise greater than its substitution effect: This refers to the situation where the income effect of a price rise is greater than the substitution effect, resulting in a decrease in demand.<\/p>\n
c. Transitivity and consistency of choices: This refers to the principle that if a consumer prefers good A to good B, and good B to good C, then they must also prefer good A to good C.<\/p>\n
d. Price quantity relationships of demand: This refers to the relationship between the price of a good and the quantity demanded of that good. The law of demand states that, ceteris paribus, the quantity demanded of a good will decrease as the price of that good increases.<\/p>\n
Giffen goods are a type of good that is an exception to the law of demand. In the case of a Giffen good, the demand for the good actually increases as the price of the good increases. This is because the good is a necessity for the consumer, and the consumer is willing to pay more for the good even though it is now more expensive.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”a-4, b-2, c-3, d-1″ option2=”a-2, b-1, c-4, d-3″ option3=”a-3, b-4, c-2, d-1″ option4=”a-1, b-2, c-3, d-4″ correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-45409","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n