Goods are ________ when the income elasticity of demand is less than zero.
A) substitutes
B) complements
C) inferior
D) elastic
E) normal

Question

Quizplus · Accepted Answer

When the income elasticity of demand is less than zero, it means that as income increases, the demand for the good decreases. This is characteristic of inferior goods, which are goods for which there are better substitutes available.

Goods Are ________ When the Income Elasticity of Demand Is