To say that turnips are inferior goods means that the income elasticity of demand
A) is negative.
B) is positive but could be greater than or less then (or equal to) 1.
C) is definitely greater than 1.
D) is definitely between 0 and 1.

Question

Quizplus · Accepted Answer

Inferior goods have a negative income elasticity of demand, meaning that as income increases, the demand for these goods decreases.

To Say That Turnips Are Inferior Goods Means That the Income