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Are luxury cars normal or inferior goods?
Luxury cars are normal goods. BY definition we know that normal goods are those goods for which when income increases, the demand for that good also increases i.e, there is a direct relationship between income and demand while on the other hand inferior goods are inversely related with income in the sense that as income increases people start buying better quality product and in that sense the good for which the demand has decreases becomes an inferior good. Therefore, supposing that person A's income has increases ,in that sense his demand for luxury car would also increase as he has more money to buy a luxury car. HOPE THIS HELPED. IF YOU THINK THERE IS ANY MISTAKE IN MY UNDERSTANDING OF THE CONCEPT, FEEL FREE TO CORRECT.
Difference between giffen goods and inferior goods?
In consumer theory, an inferior goodis a good that decreases in demand when consumer income rises, unlike normal goods, for which the opposite is observed.[1] It is a good that consumers demand increases when their income increases. [2]Inferiority, in this sense, is an observable fact relating to affordability rather than a statement about the quality of the good. As a rule, too much of a good thing is easily achieved with such goods, and as more costly substitutes that offer more pleasure or at least variety become available, the use of the inferior goods diminishes.
What is the meaning of economic sense?
economic sense is when something is for good use, in terms of the economy,benefit the economy in some sort of way
Why elasticity of demand is measured in percentage?
Price elasticity can be precisely measured by dividing the percentage change on quantity demanded by the percentage change in price that caused it. Thus e can measure price elasticity by using the formula Price elasticity = Percentage change in quantity demanded ÷ percentage change in price
In an economic sense a social scientist is concerned with what?
Ask of these
Are luxury cars normal or inferior goods?
Luxury cars are normal goods. BY definition we know that normal goods are those goods for which when income increases, the demand for that good also increases i.e, there is a direct relationship between income and demand while on the other hand inferior goods are inversely related with income in the sense that as income increases people start buying better quality product and in that sense the good for which the demand has decreases becomes an inferior good. Therefore, supposing that person A's income has increases ,in that sense his demand for luxury car would also increase as he has more money to buy a luxury car. HOPE THIS HELPED. IF YOU THINK THERE IS ANY MISTAKE IN MY UNDERSTANDING OF THE CONCEPT, FEEL FREE TO CORRECT.
Are nipples inferior to the shoulders?
In humans, yes. ("Inferior" in this sense means "below", and if your nipples are above your shoulders, that's a pretty serious birth defect.)
What is the meaning of economic sense?
economic sense is when something is for good use, in terms of the economy,benefit the economy in some sort of way
Increase in price of inferior good?
Inferior goods are goods that the consumer in a sense does not need to continue using. In other words, he buys it because it's cheap. So if the price increases, he will find the next cheapest item and switch to it. Also, if your income rises, you may feel that the inferior good is "too cheap" for you and switch to something more expensive. As an example, you buy Internet from Verizon because of the cheap cost. If Verizon raises their rates, then you may switch to Comcast.
Difference between giffen goods and inferior goods?
In consumer theory, an inferior goodis a good that decreases in demand when consumer income rises, unlike normal goods, for which the opposite is observed.[1] It is a good that consumers demand increases when their income increases. [2]Inferiority, in this sense, is an observable fact relating to affordability rather than a statement about the quality of the good. As a rule, too much of a good thing is easily achieved with such goods, and as more costly substitutes that offer more pleasure or at least variety become available, the use of the inferior goods diminishes.
Why elasticity of demand is measured in percentage?
Price elasticity can be precisely measured by dividing the percentage change on quantity demanded by the percentage change in price that caused it. Thus e can measure price elasticity by using the formula Price elasticity = Percentage change in quantity demanded ÷ percentage change in price
Is student loan reportable as income?
No, a student loan is NOT reportable income. Besides, it wouldn't make sense that immediate debt be considered income.
In an economic sense a social scientist is concerned with what?
Ask of these
Is debt to income ratio based on gross or net income?
Gross income. It doesn't make sense if it is based on a net income (adjusted for expenses) since it measures how much of debt is paid out of your income.
What is a investment?
In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.
Other things equal if a good has more substitute its price elasticity of demand is?
You need to redo the question so that it makes sense there sunshine.
Examples of Inferior goods?
In economics, a good is defined as inferior if people consume less of it when their incomes rise. If a family belongs to a lower economic level, we can ususally tell by their consumption habits. Their clothes, their choice of foods, what they buy at the grocery store reflect their very limited budget. Now, if the father and the mother both get great jobs, and their incomes increase significantly, some of the products they would replace for "better" ones are typically inferior goods. Companies that manufacture "inferior goods" tend to see their business do really well when the economy is in a recession. Mega-stores like Walmart and K-mart can be "inferior good stores" in the sense that people frequent them more often when their incomes are lower. Cheaper cars are also an example. Even within the same brand, a dealership may see their basic, no frills cheap automovile as an inferior good. When the economy rebounds, people migrate to the dealership's "better" brands. Instant Ramen noodles, bologna, hamburger, mass-market beer, hamburger-helper, mac-and-cheese, frozen dinners, and some canned goods are typical instances of "inferior goods". As people's fotunes move up, they abandon those articles in favor of more "upscale" equivalents. Note: these classifications are never exact. They can change regionally or by cultures.
