Question

Match the following:
Group A
1. Car and petrol
2. Point method
3. Necessary goods

Group B
a. Elastic demand
b. Complementary
c. Geometric method
d. Inelastic demand

Answer 1

1 to b
2to c
3 to a d

Answer 2

Explanation:

1. Cars and petrol  --- b. Complementary

2. Point method  --- c. Geometric method

3. Necessary goods  --- d. Inelastic demand

1. Cars and gasoline are additional commodities. They are products that are requested together, in other words. There is an inverse relationship between the demand for one good and the cost for another good for such products. That is, an increase in petrol prices will result in a drop in car demand.

2. Geometric technique is also referred to as point elasticity measurement method. Elasticity according to this technique is measured at different points of the demand curve.

3. Necessary goods are the goods that are demanded by a customer to sustain his life. The consumption of these goods can not be reduced by a customer. For example, food is a requirement. In reaction to changes in the prices, the demand for such products does not alter much. The consumer can't decrease their demand even when the price increases. Therefore, the demand for such products is inelastic.