In of normal goods- income effect is positive- while in of inferior goods- it is negative-TrueFalse

Question

Toppr Admin · Accepted Answer

True-Income effect is positive when the increase in income causes an increase in demand- as in the case of normal-xA0-goods- It is negative when the increase in income causes a decrease in demand- as in the case of inferior goods-

In case of normal goods, income effect is positive, while in case of inferior goods, it is negative.

True
False

True.
Income effect is positive when the increase in income causes an increase in demand, as in the case of normal goods. It is negative when the increase in income causes a decrease in demand, as in the case of inferior goods.

In case of normal goods, income effect is positive, while in case of inferior goods, it is negative.TrueFalse

True.Income effect is positive when the increase in income causes an increase in demand, as in the case of normal goods. It is negative when the increase in income causes a decrease in demand, as in the case of inferior goods.

In case of normal goods, income effect is positive, while in case of inferior goods, it is negative.

True
False

True.
Income effect is positive when the increase in income causes an increase in demand, as in the case of normal goods. It is negative when the increase in income causes a decrease in demand, as in the case of inferior goods.