UGC NET
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Eduncle Asked an Mcq
March 2, 2020 11:58 am
  • UGC NET
  • Economics

Given below are two statements – one is labelled as Assertion (A) and the other is labelled as Reason (R) :

Assertion (A) : For certain goods, the expenditure by the consumers decreases.
Reason (R) : For such goods, the income elasticity of demand is high. 
In the light of the above two statements choose the correct option :  

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  • Eduncle Best Answer

    When income of a consumer increases, the demand for inferior goods decreases. This is called negative income elasticity of demand.

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