7
Question
What is the effect of income of demand for inferior goods?
What is the effect of income of demand for inferior goods?
Open in App
Solution
The correct option is B Negative
The effect of change in income on consumer’s demand depends upon the nature of commodity. Inferior goods are those goods, the demand for which falls as income of the consumer increases. Hence, there is a negative effect.
Negative
The effect of change in income on consumer’s demand depends upon the nature of commodity. Inferior goods are those goods, the demand for which falls as income of the consumer increases. Hence, there is a negative effect.
Suggest Corrections
5
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
