A negatively-sloped Engel curve implies an inferior good.

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A negatively-sloped Engel curve means that as income increases, the quantity demanded of a good decreases. This is a characteristic of an inferior good, which is a good that people consume less of as their income increases because they can afford better alternatives. A negatively-sloped Engel curve shows that as income increases, the quantity demanded of the good decreases. This is a characteristic of an inferior good, which is a good that consumers demand less of as their income rises, and more of as their income decreases.

A Negatively-Sloped Engel Curve Implies an Inferior Good