If the income elasticity of a particular good is negative 0.2,it would be considered
A)a superior good.
B)a normal good.
C)an inferior good.
D)an elastic good.

Question

Quizplus · Accepted Answer

An income elasticity of -0.2 means that as income increases, the demand for the good decreases. This is characteristic of an inferior good, meaning that consumers tend to switch to higher-quality alternatives as their income rises.

If the Income Elasticity of a Particular Good Is Negative