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What do you mean by an 'inferior good'? Give some examples. |
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Answer» SOLUTION :(i) A good is called .inferior goods. when its demand falls with a rise in the income of a consumer and vice- versa. (ii)For example, JOWAR or Bajra for a POOR person. (iii) A good is inferior in a RELATIVE terms. It means, a good is inferior or normal is determined by the income level of a consumer. (iv)When a consumer moves to higher income, he/she MAY consider some goods below their income status, and treats them as inferior. |
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