--%>
Assignment Help - homework help

Define Inferior good

Inferior good: It is a good for which, other things equivalent, a rise in income leads to a reduction in demand.

   Related Questions in Microeconomics

  • Q : Demands of prosperous American families

    The demands of prosperous American families are most likely most income elastic for their: (i) vacations in Hawaii. (ii) higher education. (iii) cell phones. (iv) fast food meals. (v) gasoline. Ple

    		•
  • Q : Cross-elasticity of demand Interpret

    Interpret the following Cross-Price Elasticities of Demand (XED) and explain the relationship between these goods. (3 marks total, 1.5 marks per part) XED= + 0.64 and XED= -2.6

    		•
  • Q : Equilibrium price in short run The

    The equilibrium prices for cranberries within the short run of: (w) P1. (x) P2. (y) P3. (z) P4.

    Q : Effects of price rise on Substitution

    Can someone help me in finding out the right answer from the given options. The Substitution away from the good is bigger when its price increases the: (1) More close substitutes there are for good. (2) More different utilizations to which the good has been place at t

    		•
  • Q : Saving and the Supply by Interest Rate

    When the preference for current consumption over future consumption strengthens, in that case the: (w) interest rate rises. (x) interest rate falls. (y) present value of future income rises. (z) interest rate remains the same. How

    		•
  • Q : Contestable Markets When consumers

    When consumers ultimately cannot distinguish one roasted chicken dinner from other, when roasted chicken dinners are produced within a constant cost industry, and when no barriers to entry or exit exist, in that case the long-

    		•
  • Q : Reduce output to increase profit

    When the last unit produced as well as sold adds $75 to a profit-maximizing firm’s revenue with $100 to its costs, in that case the firm will: (w) increase output to increase profit. (x) reduce output to increase profit. (y) maintain similar lev

    		•
  • Q : Problem on long run competitive

    The technology is such that LAC is minimized at firm’s output equivalent to 10 and minimum LAC is Rs. 15. Assume that the demand schedule for the product is given as shown:

    Q : Rate of Return on Investment When the

    When the rate of return on investment equals the interest rate, in that case the optimal level of investment will: (w) rise. (x) fall. (y) not change. (z) Any of the above is possible.

    Q : Difference between Collusive and

    Difference between collusive and non-collusive oligopoly. Elucidate how oligopoly firms are interdependent in taking price and output decisions.

    		•