Question : Comfort is defined as the difference between

Option 1: Inferior goods and necessities

Option 2: Luxuries and inferior goods

Option 3: Necessities and luxuries

Option 4: None of the above.

Question : Statement 1: The demand for necessities is generally inelastic.

Statement 2: Necessities are essential goods with limited substitutes, making consumers less price-sensitive in their purchasing decisions.

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.

Question : Whats is elasticty of luxury goods demand?

Option 1: Inelastic

Option 2: Elastic
 

Option 3: Highly elastic

Option 4: Perfectly Inelastic

Question : If the price elasticity of demand is less than one, then the demand for the goods is said to be ______.

Option 1: perfectly inelastic

Option 2: inelastic

Option 3: perfectly elastic

Option 4: unitary elastic

Question : If the cross elasticity of demand between two goods is negative, it means the goods are:

Option 1: Substitutes.

Option 2: Complements.

Option 3: Inferior goods.

Option 4: Normal goods.