According to economists, the income elasticity of an inferior good
A) is less than one
B) exceeds one
C) is zero
D) is inelastic
E) is negative

Name: According to economists, the income elasticity of an inferior good A) is less than one B) exceeds one C) is zero D) is inelastic E) is negative
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Quizplus · Accepted Answer

The income elasticity of an inferior good is negative, meaning that as income increases, the demand for the inferior good decreases.

According to Economists, the Income Elasticity of an Inferior Good