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Question

_____ have an income elasticity of demand of between 0 and +1.

This question was previously asked in
SSC CGL 2018 (Tier 2) Statistics Previous Year Paper (22-feb-2018)
The correct answer is

Normal goods

The correct answer is option 2. Normal goods have an income elasticity of demand between 0 and +1, meaning that as income increases, the demand for these goods also increases, but at a lower rate than the increase in income.

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Similar Questions

  1. The concept of consumer surplus was propounded by __________.

  2. Goods whose demand varies inversely with income are called ____ goods.

  3. According to ____ theory, a consumer will continue to buy such products that will deliver him the most utility or maximum satisfaction at relative prices.

  4. Which of the following is true for a normal good when there is a decrease in consumer income?

  5. In relation to theory of consumers behaviour, which of the following statements is INCORRECT?


Important Questions from Consumer behaviour

  1. In the above diagram, the consumer surplus is represented by the area of :

  2. Organization responsible for preventing unfair or deceptive trade practices in textile and textile products is :
  3. The urge to possess and consume for display of wealth is called :
  4. Which of the following factors favour fashion ?
    (a) Leisure
    (b) An economy of abundance
    (c) Transportation and communication
    (d) Low income
    (e) Sumptuary laws
    Code :
  5. Arrange the following Acts in the ascending order of their years of enactment :
    (a) Environmental Protection Act
    (b) MRTP
    (c) PFA
    (d) ISI Certification Marks Act
    (e) Air Pollution Act
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