UPSC Exam > UPSC Questions > In economics, the term is used to define a ty...
Start Learning for Free
In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?
- a)Luxury good
- b)Giffen good
- c)Complementary good
- d)Inferior good
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
In economics, the term is used to define a type of good whose demand d...
- An inferior good is an economic term that describes a good whose demand drops when people's incomes rise. These goods fall out of favor as incomes and the economy improve as consumers begin buying more costly substitutes instead. x Inferior goods are the opposite of normal goods, whose demand increases even when incomes increase. Inferior goods also oppose luxury goods, items of higher quality often sold at a premium that is not needed.
- An inferior good means an increase in income causes a fall in demand. It is good with a negative income elasticity of demand (YED).
- There are many examples of inferior goods. Some of us may be more familiar with some of the everyday inferior goods we come into contact with, including instant noodles, canned goods, and frozen dinners. When people have less money, they tend to buy these kinds of products. But when their incomes rise, they often give these up for more expensive items. Hence option (d) is the correct answer.
- Luxury Goods: A luxury good means an increase in income causes a bigger percentage increase in demand. It means that the income elasticity of demand is greater than one. For example, HD TVs would be a luxury good. When income rises, people spend a higher percentage of their income on luxury goods.
- Giffen good: A rare type of good, where an increase in price causes an increase in demand. The reason is that the income effect of a rise in the price causes you to buy more of this cheap good because you can’t afford more expensive goods. x
- Complementary good: A complementary good is a product or service that provides value to another product or service. In other words, they are two things that the customer utilizes in conjunction with one another. Cereal and milk, for example, or a DVD and a DVD player.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer?
Question Description
In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer?.
In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer?.
Solutions for In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In economics, the term is used to define a type of good whose demand declines when income rises. In other words, the demand for this good is inversely related to the income of the consumer. This type of good has a negative income elasticity of demand. Which of the following terms/goods has been described in the above passage?a)Luxury goodb)Giffen goodc)Complementary goodd)Inferior goodCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup