An economist estimates that with every 15 percent increase in income, the quantity of turkey purchased declines by 1.8 percent. From this information one would conclude that turkey is:
A) a luxury.
B) a necessity.
C) an inferior good.
D) a normal good.

Question

Quizplus · Accepted Answer

Turkey is an inferior good because as income increases, the quantity purchased decreases, indicating a negative income elasticity of demand.

An Economist Estimates That with Every 15 Percent Increase in Income