Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Change in consumer income:

A change in consumer income may bring about a change in the quantity demanded of a good or service. However, the direction of change in quantity demanded will depend on the type of commodity in question. For a normal good, the quantity demanded might increase when consumer income increases and quantity demanded might fall when consumer income falls, ceteris paribus. Therefore, inferior goods are those goods that we consume more when we are worse of financially and less when we are better of. For instance who would want to buy “second hand” goods when he becomes richer? For a necessity, a change in consumer income may not affect quantity demanded.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9517026

Have any Question?


Related Questions in Microeconomics

Question you run a tutoring service for economics students

Question: You run a tutoring service for economics students. On half of all days the demand for your service is high, with Q H  = 10 - 0.2P Q H  is the number of hours you will work if you choose price P. On the remainin ...

Question what do isoquants look like if there are no

Question: What do isoquants look like if there are no substitution possibilities at all, for example, if making a one-pound cake requires precisely three eggs and three cups of flour? The response must be typed, single s ...

Question a competitive firm produces output using three

Question: A competitive firm produces output using three fixed factors and one variable factor. The firm's short-run production function is  q  = 305 x  - 2 x 2 , where  x  is the amount of variable factor used. The pric ...

Question rules restrict how we interact with others and

Question: Rules restrict how we interact with others and, therefore, restrict our ability to engage in exchange. Given these are undesirable (from an economic standpoint), what benefits to rules provide us? What is the d ...

Question is bitcoin an asset a commodity or currency does

Question: Is Bitcoin an asset, a commodity, or currency? Does it matter? How does one buy bitcoins? How are they created? Why were they created in the first place? What are they used for? The response must be typed, sing ...

Use the cost-benefit framework along with the relevant

Use the cost-benefit framework along with the relevant concepts (e.g. benefits, costs, net-benefit, opportunity cost) to explain following questions 1. Why would someone who makes a high salary and who enjoys their job g ...

Question a solar-powered personal aircraft with vtol

Question: A solar-powered personal aircraft with VTOL capability has been under development for the past 30 years by a group of engineers and physicists. SPPAV, as the plane will be termed, is expected to be available fo ...

Market equilibriumdemand qd 20 - 3psupply qs -8 2pdraw

Market equilibrium. Demand : QD = 20 - 3P Supply: QS = -8 +2P Draw the demand and supply curves on one graph and solve for the equilibrium price and quantity

Question what is the consumer price index cpi and how is it

Question: What is the Consumer Price Index (CPI), and how is it determined each month? What effect does inflation have on the purchasing power of a dollar? How does it explain differences between nominal and real interes ...

Question electric utilities in california often make

Question: Electric utilities in California often make exchanges of power with utilities in the Pacific Northwest because their time patterns of consumption differ. California peaks in summer to meet air conditioning load ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As