Consider the following statements :
Other things remaining unchanged, market demand for a good might increase if
- 1.price of its substitute increases
- 2.price of its complement increases
- 3.the good is an inferior good and income of the consumers increases
- 4.its price falls
Which of the above statements are correct?
Show answer
Answer: A. 1 and 4 only
Answer from the official UPSC key. A full explanation for this question is on its way.