{"id":53729,"date":"2024-04-15T23:58:14","date_gmt":"2024-04-15T23:58:14","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=53729"},"modified":"2024-04-15T23:58:14","modified_gmt":"2024-04-15T23:58:14","slug":"for-inferior-commodities-income-effect-is-2","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/for-inferior-commodities-income-effect-is-2\/","title":{"rendered":"For inferior commodities, income effect is"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Zero&#8221; option2=&#8221;Negative&#8221; option3=&#8221;Infinite&#8221; option4=&#8221;Positive&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is B. Negative.<\/p>\n<p>An inferior good is a good whose demand decreases when consumers&#8217; income increases. This is because consumers tend to substitute other, more desirable goods for inferior goods when they have more money to spend.<\/p>\n<p>The income effect is the change in the quantity demanded of a good due to a change in income. For inferior goods, the income effect is negative, meaning that the quantity demanded decreases when income increases.<\/p>\n<p>Here are some examples of inferior goods:<\/p>\n<ul>\n<li>Store-brand products<\/li>\n<li>Used cars<\/li>\n<li>Ramen noodles<\/li>\n<li>Public transportation<\/li>\n<\/ul>\n<p>When consumers have more money to spend, they are more likely to buy name-brand products, new cars, fresh food, and private transportation. As a result, the demand for inferior goods decreases.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Zero&#8221; option2=&#8221;Negative&#8221; option3=&#8221;Infinite&#8221; option4=&#8221;Positive&#8221; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-53729","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>For inferior commodities, income effect is<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/for-inferior-commodities-income-effect-is-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"For inferior commodities, income effect is\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Zero&#8221; 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