Commodities bought in larger quantities when income rises are called:

Related MCQs

• Which of the following statements best describes the general form of a production function: (i) It is a purely technological relationship between quantities of input and quantities of output. (ii) It represents the technology of an organisation, sector of an economy. (iii) Prices of inputs or of the output do not enter into the production function. (iv) It is a flow concept describing the transformation of inputs into output per unitof time.
• Which one of the following elasticities takes the average of prices and quantities:
• If income effect works in the same direction to that of substitution effect, the good is a:
• If income effect works in the direction opposite to that of substitution effect, the good is not:
• Income elasticity of demand for inferior goods is:
• In the case of luxury goods, the income elasticity of demand will be:
• Income elasticity is positive, but less than unity in the case of:
• If the income elasticity of demand is greater than one, then the commodity is:
• A fall in income of the consumer, other things being equal, causes:
• Change in utility resulting from one unit change in consumption is called: