Question 41
MediumOriginal questionMatch each change with its effect on the demand for tea, a normal good.
| List I | List II |
|---|---|
| A. Consumers' income rises | I. Demand for tea decreases (complement dearer) |
| B. The price of coffee falls | II. Demand for tea increases |
| C. The price of sugar rises | III. Quantity demanded of tea rises |
| D. The price of tea falls | IV. Demand for tea decreases (substitute cheaper) |
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Higher income raises demand for a normal good; cheaper coffee, a substitute, lowers it.
Dearer sugar, a complement, lowers it; tea's own price fall is a movement along the curve.
- Concept
- Causes of changes in demand
- Typical timeTypical
- 90 s
- Your timeYours
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