If the price of an inferior good falls, what about its demand? -Do You Know?

If the price of an inferior good falls, what about its demand? -Do You Know?
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If the price of an inferior good falls, what about its demand? -General Knowledge

Description : If the price of an inferior good falls, what about its demand? -General Knowledge

Last Answer : answer:

If the price of an inferior good falls, what about its demand? -General Knowledge

Description : If the price of an inferior good falls, what about its demand? -General Knowledge

Last Answer : answer:

If the price of an inferior good falls, its demand - (1) rises (2) falls (3) remains constant (4) can be any of the above

Description : If the price of an inferior good falls, its demand - (1) rises (2) falls (3) remains constant (4) can be any of the above

Last Answer : (1) rises Explanation: Some goods are known as inferior goods. With inferior goods, there is an inverse relationship between real income and the demand for the good in question. If real incomes rise, the ... than rely on the more inferior bus, so the demand for bus travel falls as real incomes rise.

If the price of an inferior good falls, what about its demand?

Description : If the price of an inferior good falls, what about its demand?

Last Answer : Remains constant

If the price of an inferior good falls, its demand (1) rises (2) falls (3) remains constant (4) can be any of the above

Description : If the price of an inferior good falls, its demand (1) rises (2) falls (3) remains constant (4) can be any of the above

Last Answer : rises

For an inferior good, demand falls when - (1) price rises (2) income rise (3) price falls (4) income falls

Description : For an inferior good, demand falls when - (1) price rises (2) income rise (3) price falls (4) income falls

Last Answer : (2) income rise Explanation: In economics, income elasticity of demand measures the responsiveness of the demand for a good to a change in the income of the people demanding the good. ... opposite is observed. Normal goods are those for which consumers' demand increases when their income increases.

For an inferior good, demand falls when (1) price rises (2) income rise (3) price falls (4) income falls

Description : For an inferior good, demand falls when (1) price rises (2) income rise (3) price falls (4) income falls

Last Answer : income rise

If a good has negative income elasticity and positive price elasticity of demand, it is a (1) giffen good (2) normal good (3) superior good (4) an inferior good

Description : If a good has negative income elasticity and positive price elasticity of demand, it is a (1) giffen good (2) normal good (3) superior good (4) an inferior good

Last Answer : (1) giffen good Explanation: A negative income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of inferior good which has positive price elasticity of demand. It ... rises, violating the law of demand. When price goes up, the quantity demanded also goes up.

Price elasticity of demand of a product will be more inelastic if (a) It forms a major part of consumer house hold budget; (b) It forms a very small part of consumers household budget; (c) It is inferior ; (d) It is for mass consumption

Description : Price elasticity of demand of a product will be more inelastic if (a) It forms a major part of consumer house hold budget; (b) It forms a very small part of consumers household budget; (c) It is inferior ; (d) It is for mass consumption

Last Answer : (b) It forms a very small part of consumers household budget; 

If a good has negative income elasticity and positive price elasticity of demand, it is a (1) giffen good (2) normal good (3) superior good (4) an inferior good

Description : If a good has negative income elasticity and positive price elasticity of demand, it is a (1) giffen good (2) normal good (3) superior good (4) an inferior good

Last Answer : giffen good

When price of a substitute of commodity falls, the demand for - (1) falls (2) remains unchanged (3) increases at increasing rate (4) rises

Description : When price of a substitute of commodity falls, the demand for - (1) falls (2) remains unchanged (3) increases at increasing rate (4) rises

Last Answer : (1) falls Explanation: Cross Price Effect refers to effect on the demand for a given commodity due to a change in the price of a substitute commodity. A change (increase or decrease) in the ... the given commodity (tea) also decreases. It shifts the demand curve of the given commodity towards left.

'Law of demand' implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

Description : 'Law of demand' implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

Last Answer : (3) price of the commodity rises Explanation: The Law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant. That is, if ... of the commodity the price starts rising and it continues to rise till equilibrium price is reached.

When the price of a commodity falls, we can expect - (1) the supply of it to increase (2) the demand for it to fall (3) the demand for it to stay constant (4) the demand for it to increase

Description : When the price of a commodity falls, we can expect - (1) the supply of it to increase (2) the demand for it to fall (3) the demand for it to stay constant (4) the demand for it to increase

Last Answer : (4) the demand for it to increase Explanation: In economics, the law of demand is an economic law, which states that consumers buy more of a good when its price is lower and less when its ... of good demanded by the consumer will be negatively correlated to the change in the price of the good

The law of demand states that: a. as the quantity demanded rises, the price rises b. as the price rises, the quantity demanded rises c. as the price rises, the quantity demanded falls d. as supply rises, the demand rises

Description : The law of demand states that: a. as the quantity demanded rises, the price rises b. as the price rises, the quantity demanded rises c. as the price rises, the quantity demanded falls d. as supply rises, the demand rises

Last Answer : c. as the price rises, the quantity demanded falls

If total revenue rises when price falls, the demand curve is (a) Elastic (b) Unitary elastic (c) Inelastic (d) None of the above

Description : If total revenue rises when price falls, the demand curve is (a) Elastic (b) Unitary elastic (c) Inelastic (d) None of the above

Last Answer : (a) Elastic

With what type of products would you expect demand to increase as price falls? A)Prestige products B)Products with elastic demand C)Products with inelastic demand D)Products with an inverted C -shaped demand curve

Description : With what type of products would you expect demand to increase as price falls? A)Prestige products B)Products with elastic demand C)Products with inelastic demand D)Products with an inverted shaped demand curve

Last Answer : D)Products with elastic demand

Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases

Description : Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases

Last Answer : © price falls and demand also falls

Tea and Coffee are perfect substitute of each other, given the price of Tea and Coffee being `100 and `200 per Kg. a consumer is prepared to buy 3 Kg. of each. If the price of tea remain same and the price of Coffee rises to `400 per kg. the demand for Tea goes to 6 Kg. and that of Coffee falls to 1Kg. The elasticity of substitution between Tea and Coffee is (a) 1 ; (b) 4 ; (c) 5 ; (d) 3

Description : Tea and Coffee are perfect substitute of each other, given the price of Tea and Coffee being `100 and `200 per Kg. a consumer is prepared to buy 3 Kg. of each. If the price of tea remain same and the price of ... elasticity of substitution between Tea and Coffee is (a) 1 ; (b) 4 ; (c) 5 ; (d) 3

Last Answer : (c) 5 ;

When the price of complementary products increases, the demand of the other product will (a) Falls ; (b) Increases ; (c) Remains same ; (d) Increases by 25%

Description : When the price of complementary products increases, the demand of the other product will (a) Falls ; (b) Increases ; (c) Remains same ; (d) Increases by 25%

Last Answer : (a) Falls ;

When the price of complementary products falls, the demand of the other product will (a) Fall ; (b) Increases ; (c) Remain stable ; (d) Drops by 25%

Description : When the price of complementary products falls, the demand of the other product will (a) Fall ; (b) Increases ; (c) Remain stable ; (d) Drops by 25% 

Last Answer :  (b) Increases ;

If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity of demand for Tea is (a) 0.45 ; (b) 0.25 ; (c) +0.44 ; (d) -0.30

Description : If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity of demand for Tea is (a) 0.45 ; (b) 0.25 ; (c) +0.44 ; (d) -0.30

Last Answer : (b) 0.25 ;

If price of coffee falls leading to increase in total outlay on coffee, the demand of coffee is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic

Description : If price of coffee falls leading to increase in total outlay on coffee, the demand of coffee is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic 

Last Answer : (a) Elastic ;

If price of X falls leading to fall in total outlay on X, the demand of X is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic

Description : If price of X falls leading to fall in total outlay on X, the demand of X is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic

Last Answer : (b) Inelastic ;

If price of X falls leading to increase in total outlay on X, the demand of X is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic

Description : If price of X falls leading to increase in total outlay on X, the demand of X is (a) Elastic ; (b) Inelastic ; (c) Unitary elastic ; (d) Less than unit elastic

Last Answer : (a) Elastic ;

The law of demand means? a) As the quantity demanded rises, the price rises b) As the price rises, the quantity demanded rises c) As the price rises, the quantity demanded falls d) As supply rises, the demand rises

Description : The law of demand means? a) As the quantity demanded rises, the price rises b) As the price rises, the quantity demanded rises c) As the price rises, the quantity demanded falls d) As supply rises, the demand rises

Last Answer : Answer- c

When price of a substitute of commodity ‘x’ falls, the demand for ‘x’ : (1) falls (2) remains unchanged (3) increases at increasing rate (4) rises

Description : When price of a substitute of commodity ‘x’ falls, the demand for ‘x’ : (1) falls (2) remains unchanged (3) increases at increasing rate (4) rises

Last Answer : falls

‘Law of demand’ implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

Description : ‘Law of demand’ implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

Last Answer :  price of the commodity rises

When the price of a commodity falls, we can expect (1) the supply of it to increase (2) the demand for it to fall (3) the demand for it to stay constant (4) the demand for it to increase

Description : When the price of a commodity falls, we can expect (1) the supply of it to increase (2) the demand for it to fall (3) the demand for it to stay constant (4) the demand for it to increase

Last Answer : the demand for it to increase

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

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

Last Answer : A consumers income can affect their demand for most goods, fornormal goods if the consumers income increases then there is ademand for more normal good, but a fall in income would cause ashift to the ... quantities, or not at all, if yourincome were to rise and you could afford something better.

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

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

Last Answer : A consumers income can affect their demand for most goods, fornormal goods if the consumers income increases then there is ademand for more normal good, but a fall in income would cause ashift to the ... quantities, or not at all, if yourincome were to rise and you could afford something better.

When the demand for a good increases with an increase in income, such a good is called - (1) Superior good (2) Giffin good (3) Inferior good (4) Normal good

Description : When the demand for a good increases with an increase in income, such a good is called - (1) Superior good (2) Giffin good (3) Inferior good (4) Normal good

Last Answer : (1) Superior good Explanation: A superior good is a product that people demand more of as they their incomes grow. These are products that are generally more expensive and rarer like diamonds and classic ... characteristics: it must be scarce, and, along with that, it must have a high price.

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

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

Last Answer : (2) Negative Explanation: A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious ... demand is associated with normal goods; an increase in income will lead to a rise in demand.

The income elasticity of demand being greater than one, the commodity must be - (1) a necessity (2) a luxury (3) an inferior good (4) None of these

Description : The income elasticity of demand being greater than one, the commodity must be - (1) a necessity (2) a luxury (3) an inferior good (4) None of these

Last Answer : (2) a luxury Explanation: In economics, income elasticity of demand measures the responsiveness of the demand for a good to a change in the income of the people demanding the good, ceteris paribus. It is ... If the elasticity of demand is greater than 1, it is a luxury good or a superior good.

As Income increases the demand for inferior goods?

Description : As Income increases the demand for inferior goods?

Last Answer : decreases

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

Description : 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

Last Answer : ; (c) Decrease in demand ;

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

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

Last Answer : (c) < 0 ;

When the demand for a good increases with an increase in income, such a good is called (1) Superior good (2) Giffin good (3) Inferior good (4) Normal good

Description : When the demand for a good increases with an increase in income, such a good is called (1) Superior good (2) Giffin good (3) Inferior good (4) Normal good

Last Answer : Superior good

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

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

Last Answer : Negative

The income elasticity of demand being greater than one, the commodity must be (1) a necessity (2) a luxury (3) an inferior good (4) None of these

Description : The income elasticity of demand being greater than one, the commodity must be (1) a necessity (2) a luxury (3) an inferior good (4) None of these

Last Answer : a luxury

According to the law of demand, what happens when price increases? -Do You Know?

Description : According to the law of demand, what happens when price increases? -Do You Know?

Last Answer : answer:

Which of the following is true about the Accounts Receivable Lag and its implications on demand? a. If you offer no credit, demand falls to about 60% of normal. b. At 30 days, demand is 90%. c. At 45 days, demand is 95%. d. At 60 days, demand is 98.5%. e. At 90 days, demand is 100%.

Description : Which of the following is true about the Accounts Receivable Lag and its implications on demand? a. If you offer no credit, demand falls to about 60% of normal. b. At 30 days, demand is 90%. c. At 45 days, demand is 95%. d. At 60 days, demand is 98.5%. e. At 90 days, demand is 100%.

Last Answer : d. At 60 days, demand is 98.5%.

The Sivasamudram Falls is on which river? -Do You Know?

Description : The Sivasamudram Falls is on which river? -Do You Know?

Last Answer : answer:

Niagara Falls is located between which pair of lakes? -Do You Know?

Description : Niagara Falls is located between which pair of lakes? -Do You Know?

Last Answer : answer:

What happens when the demand for a fad peaks and falls?

Description : What happens when the demand for a fad peaks and falls?

Last Answer : The price goes down, and the quantity supplied goes up

Which of the following occurs when labour productivity rises? (1) The equilibrium nominal wage falls. (2) The equilibrium quantity of labour falls. (3) Competitive firms will be induced to use more capital (4) The labour demand curve shifts to the right

Description : Which of the following occurs when labour productivity rises? (1) The equilibrium nominal wage falls. (2) The equilibrium quantity of labour falls. (3) Competitive firms will be induced to use more capital (4) The labour demand curve shifts to the right

Last Answer : (4) The labour demand curve shifts to the right Explanation: As labour productivity increases, the production function shifts up and simultaneously the labor demand curve shifts out and right. At ... , the production function shifts up and simultaneously the labor demand curve shifts out and right.

When aggregate supply exceeds aggregate demand - (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops

Description : When aggregate supply exceeds aggregate demand - (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops

Last Answer : (3) inventories accumulate Explanation: Deflation sets in when aggregate supply exceeds aggregate demand. Recession sets in. This will lead to a buildup in stocks (inventories) and this sends a signal to ... Either way -there is a tendency for output to move closer to the current level of demand.

If your company offers no credit terms, demand a. remains constant. b. falls 25%. c. falls 50%. d. falls 65%.

Description : If your company offers no credit terms, demand a. remains constant. b. falls 25%. c. falls 50%. d. falls 65%.

Last Answer : d. falls 65%.

If the disposal income of a household increases by 10% and the demand for bread falls by 5%. The income elasticity of bread is (a) 0.5 ; (b) -0.5 ; (c) 1.0 ; (d) -1.0

Description : If the disposal income of a household increases by 10% and the demand for bread falls by 5%. The income elasticity of bread is (a) 0.5 ; (b) -0.5 ; (c) 1.0 ; (d) -1.0

Last Answer :  (b) -0.5 ;

If prices of petrol rises from `40. To `48 per lt., the demand for cars falls from 60 per month to 45 per month, the cross elasticity of petrol and Car is (a) 1.5 ; (b) 1.25 ; (c) 1.0 ; (d) 1.59

Description : If prices of petrol rises from `40. To `48 per lt., the demand for cars falls from 60 per month to 45 per month, the cross elasticity of petrol and Car is (a) 1.5 ; (b) 1.25 ; (c) 1.0 ; (d) 1.59

Last Answer : (b) 1.25 ;

When aggregate supply exceeds aggregate demand (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops

Description : When aggregate supply exceeds aggregate demand (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops

Last Answer : inventories accumulate