GCE Economics 2025 Objective — Question 37
Question 37 of 60 from the General Certificate of Education (GCE) Economics 2025 Objective paper, with the correct answer and a full explanation.
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When the demand for a particular commodity falls as a result of an increase in income of a consumer, the products involved are ___ goods.
- A. inferiorCorrect
- B. intermediate
- C. luxury
Explanation
Inferior goods have negative income elasticity - demand decreases as income increases (e.g., cheap substitutes).
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