If income elasticity for a particular good has a negative sign:
A)the good is a normal good.
B)as income increases,consumers will tend to purchase more of the good.
C)as income increases,consumers will tend to purchase less of the good.
D)the good is a luxury good.

Question

Quizplus · Accepted Answer

Any elasticity will have a negative sign if the directions of change are in the opposite directions,for example an increase in one leads to a decrease in the other.

If Income Elasticity for a Particular Good Has a Negative