Question : In the case of inferior good , the income elasticity of demand is :
Option 1: Zero.
Option 2: Negative .
Option 3: Infinite .
Option 4: Positive .
Latest: SSC CGL Tier 1 Result 2024 Out | SSC CGL preparation tips to crack the exam
Don't Miss: SSC CGL Tier 1 Scorecard 2024 Released | SSC CGL complete guide
Suggested: Month-wise Current Affairs | Upcoming Government Exams
Correct Answer: Negative .
Solution : The correct option is negative.
In economics, an inferior good is one where demand increases as consumer income falls. This is reflected in the negative value of its income elasticity of demand, which measures how responsive the quantity demanded is to changes in income. Essentially, with inferior goods, lower income leads to higher demand, creating an inverse correlation between income and demand.
Candidates can download this ebook to know all about SSC CGL.
Result | Eligibility | Application | Selection Process | Preparation Tips | Admit Card | Answer Key
Question : For a missile launched with a velocity less than the earth's escape velocity, the total energy is
Question : What will be the effect on inferior commodities when the income of the consumers rises?
Question : When demand for a good increases with an increase in income, such a good is called
Question : In which of the following cases does the law of demand fail?
Question : The country can improve its balance of payments by devaluation when the sum of elasticity of demand for exports and imports is _____________.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile