If the income elasticity of demand for a good is negative,the good is said to be:
A)inferior.
B)negative.
C)positive.
D)normal.

Question

Quizplus · Accepted Answer

A negative income elasticity of demand indicates that as income increases, the demand for the good decreases. This is characteristic of inferior goods, which are goods that consumers buy less of as their income increases and they are able to afford better quality goods.

If the Income Elasticity of Demand for a Good Is