Home
Class 12
ECONOMICS
If income of the buyer decreases, demand...

If income of the buyer decreases, demand for inferior goods decreases.

Text Solution

Verified by Experts

The correct Answer is:
False
When income of the buyer decreases, demand for inferior goods increases. It is so because inverse relationship exists between them.
Promotional Banner

Topper's Solved these Questions

  • COST

    FULL MARKS|Exercise NCERT TEXTBOOK QUESTIONS SOLVED|137 Videos

  • ELASTICITY OF DEMAND

    FULL MARKS|Exercise NCERT TEXTBOOK QUESTIONS SOLVED|114 Videos

Similar Questions

Explore conceptually related problems

The income elasticity of demand for inferior goods is :

How will an increase in the income of the buyers of an 'inferior good', affect its equilibrium price and equilibrium quantity? Explain with help of a diagram.

How will increase in the income of the buyers of an 'inderior good' affect its equilibrium pirce and equilibrium quantity ? Explain with the help of a diagram.

FULL MARKS-DEMAND -NCERT TEXTBOOK QUESTIONS SOLVED
  1. With the rise in price, quantity demanded for the goods falls and it i...

    Text Solution

    |

  2. If price of substitute goods falls, demand for related goods will also...

    Text Solution

    |

  3. If income of the buyer decreases, demand for inferior goods decreases.

    Text Solution

    |

  4. If indian Airlines reduce fares from Delhi to Mumbai, demand curve fo...

    Text Solution

    |

  5. Explain with the help of diagrams, the effect of the following changes...

    Text Solution

    |

  6. Explain with the help of diagrams, the effect of the following changes...

    Text Solution

    |

  7. Explain the effect of the following on demand for a good: (i) Rise i...

    Text Solution

    |

  8. Explain the effect of the following on demand for a good: (i) Fall i...

    Text Solution

    |

  9. What does downward movement along the demand curve indicate?

    Text Solution

    |

  10. Does a change in consumer's taste lead to a movement along the demand...

    Text Solution

    |

  11. Law of Demand is a qualitative statement. Comment.

    Text Solution

    |

  12. According to law of demand by increasing the price of a good its deman...

    Text Solution

    |

  13. What policy initiatives can be government undertake to increase the ...

    Text Solution

    |

  14. Demand for electricity has increased. However supply cannot be incre...

    Text Solution

    |

  15. Even the price of petrol is very high but still its demand is very hig...

    Text Solution

    |

  16. A new steel plant comes up in Jharkhand. Many people who were previo...

    Text Solution

    |

  17. In order to encourage tourism in Goa, Indian Airlines reduces the air ...

    Text Solution

    |

  18. There are train and bus services between New Delhi and Jaipur. Suppose...

    Text Solution

    |

  19. A good is an inferior good for one and at the same time a 'normal' goo...

    Text Solution

    |

  20. Normally a household will not buy a second-hand scooter even if the pr...

    Text Solution

    |