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Questions and Answers
Which type of goods are normal goods?
Which type of goods are normal goods?
- Goods for which demand increases as income increases (correct)
- Goods for which demand decreases as income increases
- Goods that are always inferior
- Goods that have a constant demand regardless of income
What happens to the demand for inferior goods as consumer income increases?
What happens to the demand for inferior goods as consumer income increases?
- Demand increases
- Demand decreases (correct)
- Demand becomes perfectly elastic
- Demand remains constant
In the context of demand, what do substitute goods refer to?
In the context of demand, what do substitute goods refer to?
- Goods that are complimentary
- Goods that can be used in place of each other (correct)
- Goods that are always purchased together
- Goods that have no relation to each other
What is price elasticity of demand a measure of?
What is price elasticity of demand a measure of?
Complementary goods are products that:
Complementary goods are products that:
Exceptions/assumptions to the law of demand include:
Exceptions/assumptions to the law of demand include:
Determinants of demand refer to factors affecting:
Determinants of demand refer to factors affecting:
Law of demand states that, all else being equal, as price decreases:
Law of demand states that, all else being equal, as price decreases:
Price elasticity of demand has a negative value when:
Price elasticity of demand has a negative value when:
Unitary elasticity demand curve represents a situation where:
Unitary elasticity demand curve represents a situation where:
For which type of goods is the demand perfectly inelastic?
For which type of goods is the demand perfectly inelastic?
In which scenario does unitary elastic demand occur?
In which scenario does unitary elastic demand occur?
What type of elasticity of demand is expected for small cars bought by middle-class people in India?
What type of elasticity of demand is expected for small cars bought by middle-class people in India?
Which factor influences demand elasticity by considering the diversity of uses of a commodity?
Which factor influences demand elasticity by considering the diversity of uses of a commodity?
If the demand for a commodity like paper is being considered, what type of elasticity is expected based on its uses?
If the demand for a commodity like paper is being considered, what type of elasticity is expected based on its uses?
Goods that can be postponed or deferred in their purchase demonstrate what type of demand elasticity?
Goods that can be postponed or deferred in their purchase demonstrate what type of demand elasticity?
'Habits of the consumer' influence the elasticity of demand for goods like:
'Habits of the consumer' influence the elasticity of demand for goods like:
'Diversity of uses' for commodities like electricity results in what type of demand elasticity?
'Diversity of uses' for commodities like electricity results in what type of demand elasticity?
'Postponement of use' often leads to what kind of demand elasticity for products like houses?
'Postponement of use' often leads to what kind of demand elasticity for products like houses?
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