Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

A good that is considered to be inferior to a consumer, may be observed as normal good to the another consumer. This is due to _______.

Options:

Quality of the consumer

Income of the consumer

Quantity of the consumer

Producer of the consumer

Correct Answer:

Income of the consumer

Explanation:

The correct answer is option (2) : Income of the consumer

  • A good is considered inferior or normal depending on the income level of the consumer.
  • Inferior goods are those whose demand decreases as income increases because consumers shift to better alternatives. However, for a lower-income consumer, the same good might still be a preferred choice.
  • Normal goods are those whose demand increases as income increases.