Question

Match the following:

$A$	$B$
(1) Demand curve	(1) Unlimited
(2) Price determination	(2) Downward sloping
(3) No. of buyers and sellers	(3) Inter play of market forces
(4) Wants	(4) Perfect competition

• A. (1,4), (2,3), (3,2), (4,1)
• B. (1,2), (2,3), (3,4), (4,1)
• C. (1,4), (2,2), (3,4), (4,3)
• D. (1,3), (2,1), (3,4), (4,2)

Answer 1

The correct option is B (1,2), (2,3), (3,4), (4,1)

1) Demand curve is downward sloping from left to right because of the inverse relationship between the quantity demanded of a product and its on price.

2)Price determination is a phenomenon where the equilibrium price is determined by the market mechanism,that is, inter play of market forces,namely demand and supply.

3)Perfect competition is a situation where number of buyers and sellers are large.

4)Human wants are unlimited but the resources are limited.