Question

Match List-I with List-II:

List-I (Characteristic)		List-II (Implication)
A	Equilibrium	(I)	Plans of all the consumers and firms in the market match
B	Excess supply	(II)	Demand decreases with an increase in income
C	Inferior good	(III)	Supply is greater than market demand
D	Price ceiling	(IV)	Imposition of upper limit by government

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

Answer 1

The Correct Option is B

To accurately answer this matching question, we must correlate the characteristics from List-I with their corresponding implications in List-II. The following is an analysis of each characteristic and its appropriate match:

• Equilibrium: This condition signifies a market state where demand and supply are equal, indicating that the plans of all market participants (consumers and firms) are synchronized. Therefore, Equilibrium is matched with (I) Plans of all the consumers and firms in the market match.
• Excess supply: This scenario arises when the quantity of a good supplied exceeds the quantity demanded in the market. Consequently, it matches with (III) Supply is greater than market demand.
• Inferior good: An inferior good is defined by a decrease in its demand as consumer income rises. Thus, it is matched with (II) Demand decreases with an increase in income.
• Price ceiling: This refers to a maximum price set by the government for a particular product. Therefore, it matches with (IV) Imposition of upper limit by government.

Following this analysis, the correct pairings are as follows: (A) corresponds to (I), (B) corresponds to (III), (C) corresponds to (II), and (D) corresponds to (IV).