A good is said to be inferior if its demand?

Assessment: JAMB UTME - Economics - 1997 Subject: Economics

Question 1 Report

A good is said to be inferior if its demand?
Answer Details
A good is said to be inferior if its demand falls as its price rises. This means that as the price of the inferior good increases, consumers tend to switch to alternative goods, resulting in a decrease in demand for the inferior good. This is different from a normal good, where demand increases as income increases, resulting in an increase in demand as the price of the good increases. In the case of an inferior good, as consumers' income increases, they are likely to switch to superior alternatives, causing the demand for the inferior good to decrease.
Read lesson note on The Theory Of Demand (JAMB)
Read lesson note on Economics As A Science (JAMB)
View Answer

Related Questions

1

The movement of curve I to ll suggests
2

From the diagram above, the quantity of output is determined by the point
3

Given that at the beginning of 1973, Nigeria with a birth rate of 3% per annum had a population of 75million. This implied that in that year
4

The organization which provides credit to help countries achieve short-term balance in their balance of payment is the?
5

In the diagram below, the curve which represents firm's short-run averagevariable cost is curve
6

An important feature of a cartel is that?
7

In recent years, Nigeria's balance of payments has continued to register a deficit due to (i) increased government overseas' spending. (ii) increasing prices...
8

The current stage of the economy is depicted in curve I. Point P suggests that the economy is

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning