Question

Which of the following can cause an increase in demand:

पर्याय

• Increase in the price of substitute goods

• Decrease in the income in case of inferior goods

• Both of the above

• None of the above

Answer 1

Both of the above

Explanation:

When the price of alternative items rises, the demand for other commodities rises as well. Inferior goods are the polar opposite of normal products in that their demand rises with rising income and falls with falling income.