The income effect for an inferior good
A) is negative.
B) is zero.
C) is positive.
D) could be negative, zero, or positive.

Name: The income effect for an inferior good A) is negative. B) is zero. C) is positive. D) could be negative, zero, or positive.
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Question

Quizplus · Accepted Answer

An inferior good is a type of good whose demand decreases when income increases. Therefore, the income effect for an inferior good is negative, as an increase in income leads to a decrease in demand for the inferior good.

The Income Effect for an Inferior Good