Income elasticity of demand for an inferior good is
A)less than 0.
B)greater than 1.
C)equal to 1.
D)equal to 0.

Name: Income elasticity of demand for an inferior good is A)less than 0. B)greater than 1. C)equal to 1. D)equal to 0.
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Question

Quizplus · Accepted Answer

Income elasticity of demand for an inferior good is always negative, i.e. less than 0. This is because as income of the consumer increases, the demand for inferior goods decreases.

Income Elasticity of Demand for an Inferior Good Is