Question
In two commodity worlds if one good is
inferior then the other must beSolution
If a good is inferior, then the consumer buys more of it when their income decreases, and less when their income increases.
Let's think about the scenario given. The consumer has two goods available, and when their income decreases, they buy more of both goods. How is this possible? The consumer's budget set has shrunk, so the total value of what they buy must go down, but we're predicting that consumption of each good goes up. We therefore must conclude that it is impossible for both goods to be inferior.
- In the question given below four words are given in bold. These four words may or may not be in their correct position. The sentence is then followed by op...
- In the question given below, four words are given in bold. These four words may or may not be in their correct position. The sentence is then followed by o...
In the following questions, a few words have been highlighted which may or may not be in their correct position. The sentence is then followed by option...
Directions: Which of the phrase/ word from the options (A), (B), (C) and (D) given below each sentence should replace the phrase printed in bold letter...
In the question below, a sentence is given with four words highlighted in bold, followed by options that provide a replacement for each word. From the ...
Given below are a few questions with four highlighted words which may or may not require swapping in order to make sentence contextually and meaningfull...
In the following question, a sentence is given with a phrase highlighted in bold. Find out the phrase, among the phrases (a, b, c, d) given below each s...
Given below are a few questions with four highlighted words which may or may not require swapping in order to make sentence contextually and meaningful...
In the questions given below, four words are given in bold. These four words may or may not be in their correct position. The sentence is then followed ...
- In the question given below, four words are given in bold. These four words may or may not be in their correct position. The sentence is then followed by o...
