For an inferior good ?

A. The price elasticity of demand is negative: the income elasticity of demand is negative
B. The price elasticity of demand is positive the income elasticity of demand is negative
C. The price elasticity of demand is negative the income elasticity of demand is positive
D. The price elasticity of demand is positive the income elasticity of demand is positive

Related Mcqs:

Inferior goods have _________ and luxury goods have _________?
A. negative income elasticity income elasticity greater than 1
B. income elasticity greater than 1, negative income elasticities
C. Positive income elasticities, negative income elasticities
D. None of the above
If a product is an inferior good ?
A. Demand is inversely related to income
B. Demand in inversely related to price
C. Demand is directly related to price
D. Demand is inversely related to the price of substitutes
An inferior good is one for which an increase in income causes a(n) ?
A. decrease in supply
B. increase in demand
C. increase in supply
D. decrease in demand
During the Great Depression workers in DCs who took inferior jobs as a result of being laid off were known as ?
A. disguised unemployed
B. cyclical unemployed
C. seasonally unemployed
D. voluntarily unemployed
Demand curves are derived while holding constant ?
A. incomes, tastes, and the price of other goods.
B. income, tastes, and the price of the good.
C. income and tastes
D. tastes and the price of other goods
Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?
A. Demand is price inelastic
B. The good is inferior
C. Income elasticity is -2
D. The product is normal
A contraction in supply occurs when ?
A. Demand shifts outwards
B. The supply curve shifts inwards
C. The quantity supplied falls when the price falls
D. The supply curve shifts outwards
Adding up the quantities demanded of a good by different people facing the same price gives us the ?
A. Supply curve
B. Market demand curve
C. Demand curve
D. Market supply curve
According to the law of diminishing utility ?
A. Utility is at a maximum with the first unit
B. Increasing units of consumption increase the marginal utility
C. Marginal product will fall as more units are consumed
D. Total utility will rise at a falling rate as more units are consumed
The price elasticity of supply is +4 The price increases by 15% sales were originally 200 units What will they be now ?
A. 80 units
B. 320 units
C. 60 units
D. 120 units