CA Foundation Exam > CA Foundation Questions > In Econoville, there is one grocery shop, Eco...
Start Learning for Free
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?
| FREE This question is part of | Download PDF Attempt this Test |
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.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
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?
Question Description
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?.
Solutions 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 English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning 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? defined & explained in the simplest way possible. Besides giving the explanation 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?, 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
ample number of questions to practice 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? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation 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