Imagine that a demand function for lamb in the UK has been constructed. The income coefficient has been estimated as - 0.2. This means that, in the UK, lamb is __________good.

Name: Imagine that a demand function for lamb in the UK has been constructed. The income coefficient has been estimated as - 0.2. This means that, in the UK, lamb is __________good.
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Question

Quizplus · Accepted Answer

An inferior good is one for which demand decreases as income increases, indicated by a negative income coefficient (-0.2 in this case).

Imagine That a Demand Function for Lamb in the UK