Q.   Consider the following differences between Redshift and Blueshift:
  1. While redshift occurs when light source moves away from an observer, blueshift occurs when light source moves towards the observer
  2. While in redshift is characterized by increase in wavelength, blueshift is characterized by a decrease in wavelength
Which of the above statements is/are correct?

Answer: Both 1 & 2
Notes: Both are correct statements
A redshift happens when light or other electromagnetic radiation from an object is increased in wavelength, or shifted to the red end of the spectrum. Similarly, blueshift occurs when radiation from an object is decreased in wavelength and the light source moves towards the observer. 
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