If the income elasticity for instant noodles is - 1.5, then instant noodles are:
A) an inferior good
B) a normal good
C) a substitute good
D) a luxury good

Name: If the income elasticity for instant noodles is - 1.5, then instant noodles are: A) an inferior good B) a normal good C) a substitute good D) a luxury good
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Question

Quizplus · Accepted Answer

A negative income elasticity indicates that as income increases, the demand for the good decreases, which characterizes an inferior good.

If the Income Elasticity for Instant Noodles Is - 1