Question 30
HardOriginal questionThe government gives every household a cash transfer of ₹2,000 a month. What happens to the demand for an inferior good?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
The transfer raises households' income.
Demand for an inferior good falls as income rises, so its curve shifts left.
- Concept
- Income transfer and an inferior good
- Typical timeTypical
- 100 s
- Your timeYours
- —
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