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.
Which country was the first in Southeast Asia to recognize gay marriage?
Who holds the record for the fastest World Cup hundred by an Indian?
In which country the Joint Military Exercise Bright Star-23 will be organized?
When was Oriental Insurance Company Limited (OICL) incorporated?
What new feature does Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 introduce to improve housing affordability and quality?
What is the significance of the changes made to the 'Indira Gandhi award for best debut film' and the 'Nargis Dutt award for best feature film on nation...
The ISA’s World Solar Report series projected global solar capacity to reach how many GW by 2030?
One Nation One Ration card was started as interstate profitability of ration cards in the year……………….
What is the gross GST revenue collected in March 2023 ?
Which organization signed an MoU with the Government of Gujarat for a Rs 4000 crore investment in the Kuppa Hydro project?