For a normal good with a downward sloping demand curve:

Question

Options:

A . The price elasticity of demand is negative; the income elasticity of demand is negative.

B . The price elasticity of demand is positive; the income elasticity of demand is negative.

C . The price elasticity of demand is negative; the income elasticity of demand is positive.

D . The price elasticity of demand is positive; the income elasticity of demand is positive.

Answer: Option C
:
C
The price elasticity of demand is negative; the income elasticity of demand is positive.

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More Questions on This Topic :

Question 1. Average income increases from INR 20,000 p.m. to INR 22,000 p.m. Quantity demanded per month increases from 50....5000 to 6000 units. Which of the following is correct?

Question 2. Which of the following pairs represent substitute goods?....

Question 3. The price decreases from INR 2,000 to INR 1,800. Quantity demanded per year increases from 5000 to 6000 units.....5000 to 6000 units. Which of the following is correct?

Question 4. Demand for which of the following goods does not change with a change in income of the consumer?....

Question 5. Which of the following statements about price elasticity of demand is INCORRECT?....

Question 6. Individual demand refers to the quantity of the commodity that a consumer is able and willing to buy at each possible pr....at each possible price during a given period of time.

Question 7. In case of contraction of demand, we move:....

Question 8. As a result of rise in consumer's income, demand curve for coarse grain (inferior good):....

Question 9. When the price of the substitute goods rise then demand for a given commodity ___....

Question 10. ___ goods have positive income effect.....

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