wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

What is the effect of income of demand for inferior goods?


A

Decreasing

No worries! We‘ve got your back. Try BYJU‘S free classes today!
B

Negative

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C

Constant

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

Positive

No worries! We‘ve got your back. Try BYJU‘S free classes today!
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.


flag
Suggest Corrections
thumbs-up
5
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Market Interventions and Policy Failures
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon