Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › JNU › JNU SIS 2019 › Q17
0 marksMicroeconomics › Demand theory and elasticity › Income and substitution effects: the Slutsky equationHardabout 2 min

JNU SIS 2019 Question 17: Demand theory and elasticity

Consider the two following statements: (i) A good is inferior only if quantity demanded falls as price falls, (ii) If we observe an individual to demand less of a good as its price falls, we may conclude that the good is inferior for him. Then

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Demand theory and elasticity has come up 161 times in 7 exams since 2004.

What this question tests

This question is on Income and substitution effects: the Slutsky equation, part of Demand theory and elasticity in Microeconomics.

Splitting a price change into a substitution effect and an income effect, and why Giffen goods break the law of demand.

TestStop has 29 past-paper questions on this subtopic.

Practise Demand theory and elasticityMore on Income and substitution effects: the Slutsky equation

Similar questions from other papers

  • CUET-PG 2026 · Q3Goods are substitutes when an increase in price of one leads to _ of other commodity.
  • IIT JAM 2026 · Q5Let e, R, and p represent own price elasticity of demand, total revenue, and price, respectively for a good. If (∂ R)/(∂ p)<0, then
  • UGC-NET 2026 · Q24If the demand function is Q = 100 - 2P, when P = 25; then elasticity of demand will be:
  • CUET-PG 2025 · Q39The decision by consumers to buy larger quantities of a good at each possible price can not be caused by
  • GATE 2025 · Q28The demand function is given as log Q = log A + 0.5log P, where Q is quantity, P is the unit price of the good and A is a positive real number. The own price elasticity…

Question from the JNU SIS 2019 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.