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If a good has negative income elasticity and the positive price elasticity of demand, it is a-
  • a)
    Giffen good
  • b)
    normal good
  • c)
    superior-good
  • d)
    an inferior good
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
If a good has negative income elasticity and the positive price elast...
A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in demand and may lead to changes to more luxurious substitutes. Positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand.
Hence the correct answer is option D.
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If a good has negative income elasticity and the positive price elasticity of demand, it is a-a)Giffen goodb)normal goodc)superior-goodd)an inferior goodCorrect answer is option 'D'. Can you explain this answer?
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If a good has negative income elasticity and the positive price elasticity of demand, it is a-a)Giffen goodb)normal goodc)superior-goodd)an inferior goodCorrect answer is option 'D'. Can you explain this answer? for SSC 2024 is part of SSC preparation. The Question and answers have been prepared according to the SSC exam syllabus. Information about If a good has negative income elasticity and the positive price elasticity of demand, it is a-a)Giffen goodb)normal goodc)superior-goodd)an inferior goodCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for SSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If a good has negative income elasticity and the positive price elasticity of demand, it is a-a)Giffen goodb)normal goodc)superior-goodd)an inferior goodCorrect answer is option 'D'. Can you explain this answer?.
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