An inferior good has a ________ elasticity of demand.
A) positive income
B) negative income
C) negative cross
D) positive cross
E) negative price

Question

Quizplus · Accepted Answer

An inferior good is a type of good for which demand decreases when consumer income rises. This means that the income elasticity of demand for inferior goods is negative. Therefore, the answer is B, which corresponds to "negative income."

An Inferior Good Has a ________ Elasticity of Demand