WBCS.LIVE practice question

Which of the following will cause an increase in demand for a good?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. An increase in income if the good is an inferior goods
  2. A decrease in the price of the goods
  3. A decrease in income if the good is a normal goods
  4. An increase in the price of its substitute goods

Correct answer and explanation

Correct answer: An increase in the price of its substitute goods