A negative income elasticity of demand coefficient indicates that
A)the product is an inferior good.
B)the product follows the law of demand.
C)the product is a complementary good.
D)the product is a substitute good.

Question

Quizplus · Accepted Answer

A negative income elasticity of demand indicates that as income increases, the demand for the product decreases, which is characteristic of an inferior good.

A Negative Income Elasticity of Demand Coefficient Indicates That