The figure given below depicts the income consumption curves of an individual for four goods P, Q, R, and S.
-Refer to Figure .Which of the following goods has a negative income elasticity?

Question

The figure given below depicts the income consumption curves of an individual for four goods P, Q, R, and S.  
-Refer to Figure .Which of the following goods has a negative income elasticity?

Quizplus · Accepted Answer

Good R has a negative income elasticity, which means it is an inferior good. As income increases, the demand for inferior goods typically decreases.

The Figure Given Below Depicts the Income Consumption Curves of an Individual