Explanation The degree of responsiveness in the demand for the commodity due to a change in the price level of the commodity in the economy is known as the elasticity of demand. The coefficient of the elasticity determines the type of the demand. When the elasticity coefficient is zero, it indicates a perfectly inelastic demand which would remain same whatever changes happen to the price. When the demand is perfectly elastic, the coefficient of elasticity would be infinity. All other options lie between these extremes. Option (c): The inferior goods are those goods that the consumer decreases the demand when the income increases and vice versa which is against the normal law of demand for the goods in the economy. Thus, the quantity demanded of the inferior goods will decrease as the income increases and this indicates a negative income elasticity of demand. This means that the option 'c' is correct. Option (a): The inferior goods are different from the normal goods...

10th Edition

ISBN: 9781337613064

Author: Tucker, Irvin B.

Publisher: Cengage,

See similar textbooks

Videos

Question

Chapter 5, Problem 22SQ

To determine

The economic sense of the inferior good.

Expert Solution & Answer

Chapter 5 Solutions

Micro Economics For Today

Ch. 5.3 - According to the previous discussion, what factors...Ch. 5 - If the price of a good or service increases and...Ch. 5 - Prob. 2SQP Ch. 5 - Prob. 3SQP Ch. 5 - Prob. 4SQP Ch. 5 - Suppose a university raises its tuition from 3,000...Ch. 5 - Prob. 6SQP Ch. 5 - Suppose a movie theater raises the price of...Ch. 5 - Charles loves Mello Yello and will spend 10 per...Ch. 5 - Prob. 9SQP

Ch. 5 - Prob. 10SQP Ch. 5 - Prob. 11SQP Ch. 5 - Prob. 12SQP Ch. 5 - Prob. 13SQP Ch. 5 - Consider the following supply schedule: What is...Ch. 5 - Prob. 15SQP Ch. 5 - Prob. 16SQP Ch. 5 - A perfectly elastic demand curve has an elasticity...Ch. 5 - Prob. 2SQ Ch. 5 - Prob. 3SQ Ch. 5 - Prob. 4SQ Ch. 5 - Price elasticity of demand tends to be larger in...Ch. 5 - If a decrease in the price of movie tickets...Ch. 5 - Prob. 7SQ Ch. 5 - The president of Tucker Motors says, Lowering the...Ch. 5 - Prob. 9SQ Ch. 5 - Along a segment of the demand curve where the...Ch. 5 - Prob. 11SQ Ch. 5 - Prob. 12SQ Ch. 5 - Prob. 13SQ Ch. 5 - Prob. 14SQ Ch. 5 - Prob. 15SQ Ch. 5 - Prob. 16SQ Ch. 5 - Suppose Sally buys exactly five bars of English...Ch. 5 - Prob. 18SQ Ch. 5 - Prob. 19SQ Ch. 5 - Prob. 20SQ Ch. 5 - If bus travel is an inferior good, its income...Ch. 5 - Prob. 22SQ Ch. 5 - If automobiles and gasoline are complements, then...Ch. 5 - Suppose that when price is 10, quantity supplied...Ch. 5 - Prob. 25SQ

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Recommended textbooks for you

Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Microeconomics
Economics
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics:
Economics
ISBN:9781285859460
Author:BOYES, William
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning