If a good is inferior, then
A) the income elasticity of demand will be negative.
B) the income elasticity of demand will be zero.
C) the income elasticity of demand will be positive.
D) a decrease in income will cause demand to decrease.

Question

Quizplus · Accepted Answer

For an inferior good, the income elasticity of demand is negative because as income increases, the demand for the good decreases, and vice versa.

If a Good Is Inferior, Then