For which of the following goods is the value of income elasticity most likely to be negative?
A)Macaroni and cheese.
B)Champagne.
C)Airline tickets.
D)Clothes.
E)Toothpaste.

Question

For which of the following goods is the value of income elasticity most likely to be negative?​
A)Macaroni and cheese.
B)Champagne.
C)Airline tickets.
D)Clothes.
E)Toothpaste.

Quizplus · Accepted Answer

Macaroni and cheese is considered an inferior good, meaning that as income increases, the demand for it tends to decrease, resulting in a negative income elasticity.

For Which of the Following Goods Is the Value of Income