Multiple choice

Match the following ||| |---|---| | List - I| List - I| | (a)Law of demand is fully applicable | (i) Giffen goods | | (b)Law of demand is not applicable at all | (ii) Veblon goods | | (c)Law of demand is partly applicable | (iii)Normal goods |

  1. (a)-(i), (b)-(ii), (c)-(iii)

  2. (a)-(ii), (b)-(iii), (c)-(i)

  3. (a)-(iii), (b)-(i), (c)-(ii)

  4. (a)-(ii), (b)-(i), (c)-(iii)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The law of demand states that price and quantity demanded are inversely related. For normal goods (iii), this relationship holds fully - demand decreases when price increases. For Giffen goods (i), the law is not applicable at all - demand increases with price due to inferior good status and income effects. For Veblen goods (ii), the law is only partly applicable - higher prices may increase demand due to status signaling, but only within certain price ranges.

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