In View of the Fact that Kerosene is an Inferior Good in India :

In view of the fact that kerosene is an inferior good in India, What is/are its implication(s)?
As households get richer, they consume less kerosene.
2. Over time there is a decline in quality of kerosene
3. Government needs to stop subsidies on kerosene.
Select the correct answer using the code given below.
(a) 1 only                 (b) 1 and 2 only                 (c)2 and 3 only                         (d) 1, 2 and 3

Anurag Mishra Professor Asked on 4th November 2015 in Economics.
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2 Answer(s)

Answer: (b) 1 and 2 only

Anurag Mishra Professor Answered on 5th November 2015.
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The answer is 1 only..quality doesn’t imply for inferior goods

Dickey Default Answered on 9th November 2015.
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