Amit inherits ₹ 10,000 from a rich uncle. It is observed that even though there have been no change in prices, he continues to eat the same number of Gulab Jamuns per day. Which one of the following statements is necessarily true?
Tap an option to check your answer.
Checking your account…
Demand theory and elasticity has come up 161 times in 7 exams since 2004.
This question is on Income elasticity, normal and inferior goods and Engel curves, part of Demand theory and elasticity in Microeconomics.
How demand responds to income, how goods are classified by that response, and Engel's law.
TestStop has 33 past-paper questions on this subtopic; the nearest in year are below.
Question from the JNU SSS 2017 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.