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In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:
• Only 200 litres of milk was sold every month.
• The number of boxes of cereal customers bought went down from 280 to 240.
• The number of packets of powered milk customers bought went up from 90 to 220 per month.
Q. We can say that fresh milk in economic sense is a/an:
- a)luxury good
- b)inferior good
- c)normal good
- d)nothing can be said.
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
In Econoville, there is one grocery shop, Ecoconvenience. It used to s...
Explanation:
Normal goods are those goods whose demand increases with an increase in the income of the consumer. In contrast, inferior goods' demand decreases with an increase in the consumer's income, and luxury goods are those whose demand increases more than proportionately as income increases.
In the given scenario, we can see that when the price of fresh milk was Rs. 20 per litre, 400 litres of milk were sold every month. However, when the price was raised to Rs. 30 per litre, only 200 litres were sold. This indicates that the demand for fresh milk has decreased with an increase in its price, which is a characteristic of normal goods.
Hence, we can conclude that fresh milk in economic sense is a normal good.
Normal goods are those goods whose demand increases with an increase in the income of the consumer. In contrast, inferior goods' demand decreases with an increase in the consumer's income, and luxury goods are those whose demand increases more than proportionately as income increases.
In the given scenario, we can see that when the price of fresh milk was Rs. 20 per litre, 400 litres of milk were sold every month. However, when the price was raised to Rs. 30 per litre, only 200 litres were sold. This indicates that the demand for fresh milk has decreased with an increase in its price, which is a characteristic of normal goods.
Hence, we can conclude that fresh milk in economic sense is a normal good.
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In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer?
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In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer?.
In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer?.
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In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:• Only 200 litres of milk was sold every month.• The number of boxes of cereal customers bought went down from 280 to 240.• The number of packets of powered milk customers bought went up from 90 to 220 per month.Q.We can say that fresh milk in economic sense is a/an:a)luxury goodb)inferior goodc)normal goodd)nothing can be said.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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