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Match the following: Group A 1. Demand and price 2. Tea and coffee 3. Inferior goods 4. Factors of production 5. Pen and ink Group B a. Substitute goods b. Inverse relation c. Joint demand d. Distribution of income e. Composite demand f. Giffen goods g. Indirect demand |
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Answer» rectly matched PAIR is as follows:1. Demand and price - b. INVERSE relation. Demand and price is considered as inverse relation because, when one rises the other falls and vice versa.2. Tea and coffee - a. Substitute goods. The goods substitutes one with another are called as substitute goods. Tea and coffee are examples of such type of goods.3. Inferior goods - f. Giffen goods. Giffen good is an uncommon kind of inferior goods whose request increase as the cost of the goods hikes.4. Factors of production - g. Indirect demand. The production factor rely mainly on demand. Goods are PRODUCED as a result of demand and in some cases the produced goods are USED as raw materials for other goods.5. Pen and INK - c. Joint demand. When two goods are in demand for single purpose they are called as Joint demand. Pen and ink are joint demand for writing purpose. |
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