question archive If the demand for a product increases proportionately faster than the increase in consumers’ incomes, then the product is: A normal and necessity
If the demand for a product increases proportionately faster than the increase in consumers’ incomes, then the product is: A normal and necessity
Subject:FinancePrice:2.86 Bought9
If the demand for a product increases proportionately faster than the increase in consumers’ incomes, then the product is:
A
normal and necessity.
B
inferior and necessity.
C
normal and luxury.
D
inferior.
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Ans) A. Normal and necessity
Here demand is increasing even though income is not increasing that much, thus product must be necessity. If it were luxury than one could avoid buying it if income does'nt rose much
