Target RBI Grade B 2025
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Target RBI Grade B 2025
1. Other things remaining unchanged, market demand for a good might ⬆️ if:
A. Price of its substitute ⬆️
B. Price of its complement ⬆️ C. The good is an inferior good & income D. Its price⬇️ (RBI ESI)
Statement A (Price of its substitute increases): If the price of a substitute increases, the demand for the good in question is likely to increase because consumers will switch to the cheaper alternative. This statement is correct.

Statement B (Price of its complement increases): If the price of a complement increases, the demand for the good in question is likely to decrease because complements are used together. So, this statement is incorrect.

Statement C (The good is an inferior good and income of the consumers increases): For inferior goods, an increase in income leads to a decrease in demand as consumers will now prefer higher-quality goods. Thus, this statement is incorrect.

Statement D (Its price falls): A decrease in price typically leads to an increase in demand for the good, according to the law of demand. This statement is correct.

Hence, only A and D are correct!
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Target RBI Grade B 2025
If you are also facing the similar issue then press πŸ™ button!
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