A negatively-sloped Engel curve implies a(n):
A)inferior good.
B)normal good.
C)Giffen good.
D)marginal good.

Question

Quizplus · Accepted Answer

A negatively-sloped Engel curve indicates an inverse relationship between income and quantity demanded. This implies that as income decreases, the quantity demanded of the good increases. This is a characteristic of an inferior good, as opposed to a normal or luxury good. A Giffen good is a specific type of inferior good that has a unique relationship with price that is different from other inferior goods. A marginal good is not a recognized economic term. A negatively-sloped Engel curve represents an inferior good, which means that as income increases, the quantity demanded of the good decreases. This is in contrast to a normal good where the quantity demanded increases as income increases. A Giffen good is a rare type of inferior good where the demand increases as the price increases, which is not necessarily related to income. "Marginal good" is not a recognized term in economics.

A Negatively-Sloped Engel Curve Implies A(n)