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Question
When income increases, the demand for ______ type of good will increase.
Options
inferior goods
giffen goods
normal goods
coarse goods
Solution
When income increases, the demand for normal goods type of good will increase.
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RELATED QUESTIONS
Explain any three factors that affect the demand for a commodity.
The demand for a Good X increases when the price of its substitute ______ OR when the price of its complements ______.
From the set of statements given in Column I and Column II, choose the correct pair of statements:
| Column I | Column II |
| A. Normal goods | (i) Goods the demand for which tends to fall with increase in income. |
| B. Inferior goods | (ii) Goods which cannot be used in place of one another. |
| C. Substitute goods | (iii) Goods which can be used in place of one another. |
| D. Joint demand | (iv) Goods the demand for which rise with increase in income. |
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