If a product is an inferior good,then its income elasticity of demand is
A) zero.
B) positive.
C) negative.
D) indeterminate.
E) undefined.

Name: If a product is an inferior good,then its income elasticity of demand is A) zero. B) positive. C) negative. D) indeterminate. E) undefined.
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Question

Quizplus · Accepted Answer

An inferior good is a good whose demand decreases as income increases. This means that the income elasticity of demand for an inferior good is negative. Therefore, option C is the correct choice.

If a Product Is an Inferior Good,then Its Income Elasticity