Maharashtra State BoardHSC Arts 12th Board Exam
Advertisement Remove all ads

Fill in the Blanks with Appropriate Alternatives Given in the Bracket. If the Price of the Inferior Goods Falls, the Demand for Them Will ________. - Economics

MCQ

Fill in the blanks with appropriate alternatives given in the bracket.  

 If the price of the inferior goods falls, the demand for them will ________. 

Options

  • 1.increase

  • 2.decrease

  • 3.remain constant

  • 4.become zero

Advertisement Remove all ads

Solution

 If the price of the inferior goods falls, the demand for them will decrease.
Explanation:
In case of inferior goods, when the prices fall, the quantity demanded also falls due to negative income effect as there is a rise in the preferences of superior quality goods by the consumers.

Concept: Micro Economics - Price Theory
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×