For which product is the income elasticity of demand most likely to be negative?
A)computer software
B)used clothing
C)apps for iPhones
D)bread

Question

Quizplus · Accepted Answer

The income elasticity of demand is negative for inferior goods, meaning that as income increases, the demand for these goods decreases. Used clothing is considered an inferior good because people tend to buy less of it as their income rises, preferring new clothing instead.

For Which Product Is the Income Elasticity of Demand Most