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Match List-I with List-II

List-IList-II
(A) Demand shifts right and supply remains unchanged.(I) Price increase, quantity increases.
(B) Supply shifts right and demand remains unchanged.(II) Price decrease, quantity increases.
(C) Demand shifts left and supply shifts left.(III) Quantity decreases.
(D) Supply shifts right and demand shifts right.(IV) Quantity increases.

Choose the correct answer from the options given below:

  1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
  2. (A) - (II), (B) - (I), (C) - (III), (D) - (IV)
  3. (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
  4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Solution

✅ Correct Option: 1

Option 1 -> (A) Demand shifts right means demand increases. With supply unchanged, we move up the supply curve, causing both price and quantity to increase, matching (I).

Option 2 -> Incorrect matching. (A) would match (I), not (II).

Option 3 -> Incorrect matching. (C) would match (III), not (IV).

Option 4 -> Incorrect matching. All pairings are wrong.


Hence, Option 1: (A) - (I), (B) - (II), (C) - (III), (D) - (IV) -> (A) Demand increases → Price ↑, Quantity ↑. (B) Supply increases → Price ↓, Quantity ↑. (C) Both curves shift left → Quantity definitely decreases (price effect ambiguous). (D) Both curves shift right → Quantity definitely increases (price effect ambiguous). -> correct

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