Q. In view of the fact that kerosene is an inferior good in India, what is/are its implication(s)?

Select the correct answer using the code given below.

1 and 2 only

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1 only

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2 and 3 only

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1, 2 and 3

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Solution

The correct option is B 1 only
Explanation:

Statement 1 is correct: An inferior good is an economic term that describes a good whose demand drops when people's incomes rise. This occurs when a good has more costly substitutes that see an increase in demand as incomes and the economy improve. As people's incomes rise, they can afford LPG.

Statements 2 and 3 are not correct: An inferior good is not always of inferior quality. They are associated with a negative income elasticity.

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Similar questions

Q. Statement: The government has decided to reduce its subsidy on LPG; however the subsidy on kerosene remains unchanged.
Assumptions:
I. Those people who buy LPG can afford to purchase LPG for a higher price.
II. Many people may stop buying LPG and instead use kerosene.

The census 2001 shows that in rural India only _____ percent of households have electricity connection, and ______ percent still use kerosene.

Q22. With reference to phasing out kerosene in rural India, which of the following schemes can be useful?
1. National solar mission
2. Ujwala scheme
3. Saubhagya scheme
Select the correct answer using the codes given.

Q. Salman had

\frac{1}{4}

L of kerosene left in a bottle. He needs to sell 800 mL of kerosene to his customer. How much more kerosene should he pour into the bottle before handing it to the customer?

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2.0 \times 10^{5} N m^{- 2}

from the following data? Density of kerosene = 800 kg m

^{- 3}

and speed of sound in kerosene = 1330 ms

^{- 1}

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Q. In view of the fact that kerosene is an inferior good in India, what is/are its implication(s)? Select the correct answer using the code given below.

Q. In view of the fact that kerosene is an inferior good in India, what is/are its implication(s)?

Select the correct answer using the code given below.