For an inferior good, the income elasticity of demand will be:
A) negative.
B) positive.
C) zero.
D) determined by the direction of the change in income.

Name: For an inferior good, the income elasticity of demand will be: A) negative. B) positive. C) zero. D) determined by the direction of the change in income.
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Question

Quizplus · Accepted Answer

For an inferior good, as income increases, the quantity demanded decreases, leading to a negative income elasticity of demand.

For an Inferior Good, the Income Elasticity of Demand Will