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Chapter 1 Unit II questions

For Chapter 1 Unit II questions Click Nature & Scope of Business Economics
QUESTION
Q21) Which of the following is an incorrect statement?

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Correct

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Solution:
The incorrect statement is (c) As the income of the consumer increases, the demand for the commodity increases always and vice versa.
This statement is not always true as the relationship between income and demand depends on the type of goods.
For normal goods, as income increases, the demand for the commodity also increases, and vice versa. However, for inferior goods, as income increases, the demand for the commodity decreases.
Statements (a), (b), and (d) are correct.
Correct option is (c)