If a good is inferior, then the income elasticity of demand for that good is
A)positive and greater than 1
B)negative
C)positive and less than 1
D)0
E)perfectly elastic

Name: If a good is inferior, then the income elasticity of demand for that good is A)positive and greater than 1 B)negative C)positive and less than 1 D)0 E)perfectly elastic
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Question

Quizplus · Accepted Answer

An inferior good is a good for which demand decreases as income increases, meaning the income elasticity of demand is negative.

If a Good Is Inferior, Then the Income Elasticity of Demand