Consider the following statements : Other things remaining unchanged, market demand for a good might increase if 1. price of its substitute increases 2. price of its complement increases 3. the good is an inferior good and income of the consumers increases 4. its price falls Which of the above statements are correct?

1. Statement 1 is correct. If the price of its substitute increases, consumers will shift away from the substitute and towards the original good, causing its market demand to increase. 2. Statement 2 is incorrect. If the price of its complement increases, the cost of using the original good (along with its complement) rises. This will lead to a decrease in the market demand for the original good. 3. Statement 3 is incorrect. An inferior good is defined as a good whose demand decreases when the income of the consumers increases. Therefore, if the good is an inferior good and income increases, its market demand will decrease, not increase. 4. Statement 4 is correct. According to the law of demand, other things remaining unchanged, a fall in the price of a good leads to an increase in the quantity demanded, thus increasing its market demand. Hence, only statements 1 and 4 are correct.