Download App

Theory of consumer behaviour — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour3 Marks
Question
Explain the difference between an inferior good and a normal good.
✓

Answer

When with increase (decrease) in income of the buyer, the demand for the good decreases (increases), the good is called an inferior good.
When with increase (decrease) in income of the buyer, the demand for the good increases (decreases), the good is called normal good.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Theory of consumer behaviour→Theory of consumer behaviour — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

State any three determinants of individual demand other than own price of the good.
→
Explain the meaning of diminishing returns to Para factor. Why do diminishing returns to a factor occur?
→
Consider the demand for a good. At price ₹ 4, the demand for the good is 25 units. Suppose price of the good increases to ₹ 5, and as a result, the demand for the good falls to 20 units. Calculate price elasticity of demand.
→
State whether the following statements are true or false. Give reasons for your answer.
  1. The difference between ATC and AVC is constant.
  2. AC falls only when MC falls.
  3. As output is increased, the difference between ATC and AVC falls and ultimately becomes zero.
→
State the meaning of normal goods and inferior goods.
→
Give the meaning of normal goods and inferior goods. Give examples in each case.
OR
Explain the difference between an inferior good and a normal good.
→
Price elasticity of demand for the two goods X and Y are zero and (–) 1 respectively. Which of the two is more elastic and why?
→
What is the total product of an input?
→
Ice cream is sold for ₹ 30. Lakshmi who loves eating ice cream, has already eaten 3 ice creams. Her marginal utility from eating 3 ice cream is 90. Suppose, for her, MU of one rupee is 3. should she eat more ice creams or stop?
→
Define Average Revenue. Show that Average Revenue and Price are same.
→