If the income elasticity of a good is negative, the good is a(n) _____ good.
A) normal
B) luxury
C) inferior
D) superior

Question

Quizplus · Accepted Answer

If the income elasticity of a good is negative, it means that as income increases, the demand for the good decreases. This characteristic is typical of inferior goods, as consumers tend to buy less of them as their income rises, often substituting them with higher-quality goods.

If the Income Elasticity of a Good Is Negative, the Good