If bus travel is an inferior good, then its income elasticity of demand will be
A) strictly greater than one.
B) positive.
C) equal to zero.
D) negative.

Name: If bus travel is an inferior good, then its income elasticity of demand will be A) strictly greater than one. B) positive. C) equal to zero. D) negative.
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Question

Quizplus · Accepted Answer

Inferior goods have a negative income elasticity of demand, meaning that as income increases, the demand for these goods decreases.

If Bus Travel Is an Inferior Good, Then Its Income