Question

As income of people in a country goes on increasing,the demand for inferior quality of goods is likely

Answer 1

a consumer spend his income in 2 types of good normal and inferior goods. and inferior goods are those goods whose demand decrease with the rise in level of income

Answer 2

Answer:

Concept:

In relation to income, there are two kinds of Goods- normal goods and inferior goods.

To find:

As income of people in a country goes on increasing,the demand for inferior quality of goods is likely to?

Solution:

Inferior goods are the goods which have cheap prices in the economy.

With increase in income, the standard of living of people increases, and the demand for inferior good decreases.

Therefore, As income of people in a country goes on increasing,the demand for inferior quality of goods is likely to decrease.