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Which of the following statement about inferior goods is/are false? 1 point Inferior goods are those that we will never buy, no matter how cheap they are Inferior goods are those that we will buy more if we become poorer Inferior goods are those that we will buy more if we become richer?
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Which of the following statement about inferior goods is/are false? 1 ...
False Statements about Inferior Goods
There is only one false statement about inferior goods in the given options, which is:
- Inferior goods are those that we will never buy, no matter how cheap they are.
Explanation
Inferior goods are a type of goods whose demand decreases as consumer income increases. This is because as consumers become richer, they tend to switch to superior goods, which offer better quality, features, and prestige. Inferior goods have negative income elasticity of demand, which means that their quantity demanded decreases as income increases. Some examples of inferior goods are:
- Generic or store-brand products
- Used cars
- Fast food
- Public transportation
- Low-quality clothing
True Statements about Inferior Goods
The true statements about inferior goods are:
- Inferior goods are those that we will buy more if we become poorer.
- Inferior goods are those that we will buy less if we become richer.
These statements are true because as our income decreases, we tend to switch to cheaper alternatives, which are often inferior goods. For example, if we lose our job or our income decreases, we may switch from buying branded products to buying generic or store-brand products. On the other hand, if our income increases, we may switch from buying fast food to dining at fancy restaurants or from using public transportation to buying a car.
Conclusion
Inferior goods are an important concept in economics, as they help explain how consumer behavior changes with income. While we may not always like to buy inferior goods, they can be a rational choice when our budget is tight.
There is only one false statement about inferior goods in the given options, which is:
- Inferior goods are those that we will never buy, no matter how cheap they are.
Explanation
Inferior goods are a type of goods whose demand decreases as consumer income increases. This is because as consumers become richer, they tend to switch to superior goods, which offer better quality, features, and prestige. Inferior goods have negative income elasticity of demand, which means that their quantity demanded decreases as income increases. Some examples of inferior goods are:
- Generic or store-brand products
- Used cars
- Fast food
- Public transportation
- Low-quality clothing
True Statements about Inferior Goods
The true statements about inferior goods are:
- Inferior goods are those that we will buy more if we become poorer.
- Inferior goods are those that we will buy less if we become richer.
These statements are true because as our income decreases, we tend to switch to cheaper alternatives, which are often inferior goods. For example, if we lose our job or our income decreases, we may switch from buying branded products to buying generic or store-brand products. On the other hand, if our income increases, we may switch from buying fast food to dining at fancy restaurants or from using public transportation to buying a car.
Conclusion
Inferior goods are an important concept in economics, as they help explain how consumer behavior changes with income. While we may not always like to buy inferior goods, they can be a rational choice when our budget is tight.
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Which of the following statement about inferior goods is/are false? 1 point Inferior goods are those that we will never buy, no matter how cheap they are Inferior goods are those that we will buy more if we become poorer Inferior goods are those that we will buy more if we become richer?
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Which of the following statement about inferior goods is/are false? 1 point Inferior goods are those that we will never buy, no matter how cheap they are Inferior goods are those that we will buy more if we become poorer Inferior goods are those that we will buy more if we become richer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statement about inferior goods is/are false? 1 point Inferior goods are those that we will never buy, no matter how cheap they are Inferior goods are those that we will buy more if we become poorer Inferior goods are those that we will buy more if we become richer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement about inferior goods is/are false? 1 point Inferior goods are those that we will never buy, no matter how cheap they are Inferior goods are those that we will buy more if we become poorer Inferior goods are those that we will buy more if we become richer?.
Which of the following statement about inferior goods is/are false? 1 point Inferior goods are those that we will never buy, no matter how cheap they are Inferior goods are those that we will buy more if we become poorer Inferior goods are those that we will buy more if we become richer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statement about inferior goods is/are false? 1 point Inferior goods are those that we will never buy, no matter how cheap they are Inferior goods are those that we will buy more if we become poorer Inferior goods are those that we will buy more if we become richer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement about inferior goods is/are false? 1 point Inferior goods are those that we will never buy, no matter how cheap they are Inferior goods are those that we will buy more if we become poorer Inferior goods are those that we will buy more if we become richer?.
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