The income elasticity of demand of inferior goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) = 0

The income elasticity of demand of inferior goods is generally (a) >1 ; (b) < 1 ; (c) < 0 ; (d) = 0
by

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Answer :

(c) < 0 ;
by

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A goods can be considered inferior goods in economics if increase in disposal income of the consumer causes (a) An increase in demand ; (b) No change in demand ; (c) Decrease in demand ; (d) Less than proportionate change in demand

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The cross elasticity of substitute goods is generally (a) > 1 ; (b) < 1 ; (c) < 0 ; (d) > 0

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In the case of an inferior good, the income elasticity of demand is : (1) Zero (2) Negative (3) Infinite (4) Positive

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Price elasticity demand of product will be more elastic if it (a) Has no substitutes ; (b) Has number of substitutes ; (c) Is an item of necessity; (d) Is life saving Product

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How does the consumer income affect the demand for normal and inferior goods?

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How does the consumer income affect the demand for normal and inferior goods?

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As Income increases the demand for inferior goods?

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