Other things remaining constant, if the price of the inferior goods decreases then what will be the effect?a)Demand increasesb)Demand decreasesc)Quantity demanded increasesd)Quantity demand decrease.Correct answer is option 'D'. Can you explain this answer?

Question

Answer

Effect of Decrease in Price of Inferior Goods on Quantity Demanded

When the price of an inferior good decreases, it will lead to a decrease in the quantity demanded of that good. This is due to the fact that inferior goods are considered to be of lower quality compared to other goods in the market. As such, when the price of an inferior good decreases, consumers will tend to shift to other goods that are considered to be of better quality.

Factors Affecting Demand for Inferior Goods

There are several factors that affect the demand for inferior goods:

1. Income: Inferior goods are those goods for which the demand decreases as income increases. As such, a decrease in the price of an inferior good will lead to a decrease in the quantity demanded.

2. Availability of substitutes: If there are substitutes available for a particular inferior good, then consumers are likely to shift to those substitutes when the price of the inferior good decreases.

3. Perception of quality: The perception of quality of a good can also affect the demand for that good. If consumers perceive an inferior good to be of lower quality, then they are likely to shift to other goods when the price of the inferior good decreases.

Conclusion

In conclusion, when the price of an inferior good decreases, it will lead to a decrease in the quantity demanded of that good. This is due to the fact that consumers will tend to shift to other goods that are considered to be of better quality. Factors such as income, availability of substitutes, and perception of quality can also affect the demand for inferior goods.

Answer

Quantity demand decrease because inferior goods are low quality goods and law of demand does not apply on inferior goods.

Answer

Inferior goods are an exception to law of demand whose demand decreases with fall in price. This is because when price falls of inferior goods the real per capita income increases and they are left with more amount of income to be spent for consumption .So they shift to normal goods and as the consumption of such commodities is limited so the demand for inferior goods decreases..

Answer

Inferior goods are that goods which have a negative relationship between price and income i.e. if the income increases then demand will decrease and vise-versa. and due to its income effect demand will decrease. inferior goods are those goods which are cheaper quality. if its price decreases then consumer will go for its substitute that's why demand for it decreases.

Answer

What is the difference between quantity and quantity demanded? plz help

Answer

Since under inferior goods positive substitution effect is greater than negative income effect , a reduction in price will cause an increase in demand
option c

Answer

Inferior goods have negative relation with income.
when income increase the demand for inferior goods decrease and just vice versa.... And inferior goods are expection of law of demand because when goods price decrease the demand also decrease and just vice versa when price increase..

Answer

Because in the inferior good there is positive relation between price and quantity demand so decreases in price decrease in quantity demand

Answer

Ans is C as inferior goods are not the exception of demand

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