Question

Match the following:

List-I		List-II
(A)	Leftward shift in both demand and supply curves	(I)	Equilibrium price remains unchanged
(B)	Rightward shift in both demand and supply curves	(II)	Equilibrium quantity increases
(C)	Equal percentage increase in both demand and supply curves	(III)	Equilibrium quantity decreases
(D)	Supply curve shifts right and demand curve shifts left	(IV)	Equilibrium quantity remains unchanged

Choose the correct answer from the options given below:

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

Hint:

Remember:

• Demand & Supply both decrease $\rightarrow$ Quantity decreases
• Demand & Supply both increase $\rightarrow$ Quantity increases
• Equal proportional shifts may keep price unchanged

Answer 1

The Correct Option is A

Concept: Equilibrium price and quantity in a market are determined by the interaction of demand and supply. A shift in demand or supply curves changes equilibrium conditions.

Step 1: Match (A): Leftward shift in both demand and supply curves. A leftward shift means:

• Demand decreases
• Supply decreases

This generally reduces equilibrium quantity. Thus: \[ (A) \rightarrow (III) \]

Step 2: Match (B): Rightward shift in both demand and supply curves. A rightward shift means:

• Demand increases
• Supply increases

This increases equilibrium quantity. Thus: \[ (B) \rightarrow (II) \]

Step 3: Match (C): Equal percentage increase in demand and supply curves. When both demand and supply increase proportionately: \[ \text{Equilibrium price remains unchanged} \] Thus: \[ (C) \rightarrow (I) \]

Step 4: Match (D): Supply shifts right and demand shifts left. An increase in supply and decrease in demand may offset each other, causing equilibrium quantity to remain unchanged. Thus: \[ (D) \rightarrow (IV) \] Hence, the correct matching is: \[ (A)-(III),\quad (B)-(II),\quad (C)-(I),\quad (D)-(IV) \] Therefore, \[ \boxed{(A)-(III),\; (B)-(II),\; (C)-(I),\; (D)-(IV)} \]