Q.In the following question, a statement of Assertion (A) is followed by a statement of Reason (R). Choose the correct alternative among those given below : Assertion (A): The demand of normal goods varies directly with income. Reason (R): The demand curve of normal goods shift to its right with fall in income of the consumer. (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true

For an inferior good, a rise in income shifts the demand curve leftward.

An inferior good has a negative income effect: as the consumer's income rises, the demand for it falls (people switch to superior substitutes). A fall in demand at every price is shown by a leftward (backward) shift of the demand curve. (For a normal good, a rise in income would sh …

For normal goods the Law of Demand shows an inverse relationship between price and quantity demanded, so the answer is (C).

The Law of Demand says that, holding other factors constant (ceteris paribus), a rise in the price of a normal good reduces its quantity demanded and a fall in price increases it. Thus price and quantity demanded move in opposite directions — an inverse (negative) relationship — which is why the demand curve slopes downwar …

An inverse relationship between income and demand defines an inferior good, not a normal good.

Goods are classified by how demand responds to a change in the consumer's income, keeping price and other factors constant:

• Normal good: demand moves in the SAME direction as income — as income rises, demand rises (e.g., branded clothing, better quality food).
• Inferior good: demand moves in the OPPOSITE direction to income — as income rises, the consumer buys LESS of it and switches to a superior substitute (e.g., a consumer buying less coarse grain and more fine rice as income rises). …

A rise in income, a larger population, or stronger taste all shift a normal good's demand curve rightward — so the answer is 'All of the above' (Kerala Plus Two/DHSE economics).

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As income rises, demand for inferior goods falls, so the answer is (B).

In the BSEB Inter Class-12 Economics syllabus, goods are classified by how their demand responds to income. For a normal good, demand rises with income (positive income elasticity). For an inferior good, demand falls as income rises, because the consumer shifts to superior substitutes (for example, moving from coarse …

For an inferior good, demand decreases when consumer income increases.

Why:

• An inferior good is defined by a negative relationship between income and demand. …

Coarse cereals are an inferior good, so (C) is correct.

Goods are classified by how demand responds to income. For a normal good demand rises with income; for an inferior good demand falls with income as the consumer substitutes a better alternative. As income rises, households buy more jewellery (A), bette …

As income increases, the demand curve for a normal good shifts to the right.

A normal good is one whose demand moves in the same direction as income. When income rises, the consumer can and does buy more of the good at each and every price, so the entire demand curve shifts rightward (outward). (If income fell, it …

For inferior goods, a rise in consumer income reduces demand, so the answer is (b) falls (decreases).

Goods are classified by how their demand responds to income. For normal goods, demand rises when income rises. For inferior goods, the relationship is inverse — as income increases, the consumer can afford better alternatives and therefore buys less of the inferior good. Common textbook examples are coarse cereals or low-quality transpor …