If the income elasticity for a particular good is negative, then:
A)the good is a normal good.
B)as income increases, consumers will tend to purchase more of the good.
C)as income increases, consumers will tend to purchase less of the good.
D)the good is a luxury good.

Question

Quizplus · Accepted Answer

The income elasticity of demand will be negative if an increase in income leads to a decrease in demand (or a decrease in income leads to an increase in demand).

If the Income Elasticity for a Particular Good Is Negative