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Match List-I with List-II

List-IList-II
(A) Demand and supply curve shift leftward(I) Quantity may increase, decrease or remain unchanged and price decreases
(B) Demand and supply curve shift rightward(II) Quantity may increase, decrease or remain unchanged and price increases
(C) Demand curve shifts leftward and supply curve rightward(III) Quantity decreases and price may increase, decrease or remain unchanged
(D) Demand curve shifts rightward and supply curve leftward(IV) Quantity increases and prices may increase, decrease or remain unchanged

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

(A) - (III), (B) - (IV), (C) - (I), (D) - (II) -> Let's analyze each scenario:

(A) Both demand and supply shift leftward: Demand ↓ (price↓, quantity↓) + Supply ↓ (price↑, quantity↓) = Quantity definitely decreases, but price effect is ambiguous (depends on relative magnitudes). Matches (III).

(B) Both demand and supply shift rightward: Demand ↑ (price↑, quantity↑) + Supply ↑ (price↓, quantity↑) = Quantity definitely increases, but price effect is ambiguous. Matches (IV).

(C) Demand shifts leftward, supply shifts rightward: Demand ↓ (price↓, quantity↓) + Supply ↑ (price↓, quantity↑) = Price definitely decreases, but quantity effect is ambiguous. Matches (I).

(D) Demand shifts rightward, supply shifts leftward: Demand ↑ (price↑, quantity↑) + Supply ↓ (price↑, quantity↓) = Price definitely increases, but quantity effect is ambiguous. Matches (II). -> correct

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