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Question
Which of the following can cause an increase in demand:
Options
Increase in the price of substitute goods
Decrease in the income in case of inferior goods
Both of the above
None of the above
MCQ
Solution
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.
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