Inferior goods have an income elasticity of demand that is
A)positive
B)negative
C)0
D)greater than 1 in absolute value
E)equal to 1 in absolute value

Name: Inferior goods have an income elasticity of demand that is A)positive B)negative C)0 D)greater than 1 in absolute value E)equal to 1 in absolute value
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Question

Quizplus · Accepted Answer

Inferior goods are those for which as the consumer's income increases, demand decreases. Therefore, the income elasticity of demand for inferior goods is negative.

Inferior Goods Have an Income Elasticity of Demand That Is