If your income elasticity of demand for hot dogs is negative, then:
A)your demand curve for hot dogs is not downward sloping.
B)hot dogs are an inferior good for you.
C)hot dogs have no close substitutes for you.
D)you must not enjoy eating hot dogs.

Question

Quizplus · Accepted Answer

The income elasticity of demand for a good is the percentage by which quantity demanded changes in response to a one percent change in income. For inferior goods, an increase in income leads to a decrease in consumption (and a decrease in income leads to an increase in consumption), implying that the income elasticity of demand is negative for inferior goods.

If Your Income Elasticity of Demand for Hot Dogs Is