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Question : For an inferior good , demand falls when 

Option 1: Price rises .

Option 2: Income rises.

Option 3: Price fall.

Option 4: Income fall.


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Income rises.


Solution : The correct option is income rises.

When consumer incomes rise, the demand for inferior goods tends to decrease, and conversely, when incomes fall, the demand for these goods tends to increase. This phenomenon occurs because as consumers experience an increase in income, they often opt for higher-quality or more desirable alternatives, reducing their demand for inferior goods.

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