A good number of candidates attempted this question and scored high marks.  Most of  the candidates provided appropriate answers to the question but a few of them could not adequately explain the relationship between the concepts involved.

The candidates were expected to provide the following answers to score maximum marks in this question.

(a)        If the price of commodity Y which is a complement of X decreases, other
            things being equal, more of Y will be demanded.  The demand for X will
            therefore also increase.

(b)        If disposable income (income after tax) increases; more of commodity X will be
                        demanded, If X is a normal good.
                        Less of commodity X will be demanded, if X is an inferior good.

Demand for X will not change if X is a good subject to satiety.

(c)        Other things being equal, the price of P will increase.  X will therefore become
more attractive.  Hence the demand for X will increase.

(d)       Increase in income tax will reduce consumers’ disposable income.  Other things being equal, less of X will be demanded if X is a normal good.  More of X will be demanded if X is an inferior good.
The quantity demanded of X will not change if X is a good subject to satiety.