The income effect for an inferior good
A) is negative.
B) is positive.
C) is zero.
D) could be negative, zero or positive.

Name: The income effect for an inferior good A) is negative. B) is positive. C) is zero. D) could be negative, zero or positive.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The income effect for an inferior good is negative because as income increases, the demand for the inferior good decreases.

The Income Effect for an Inferior Good