In order to prove that macaroni is an inferior good,we could test the _____ for macaroni and get a _____.
A)cross-price elasticity of demand; negative number.
B)price elasticity of demand; negative number.
C)income elasticity of demand; positive number.
D)price elasticity of demand; positive number.
E)income elasticity of demand; negative number.

Question

Quizplus · Accepted Answer

An inferior good is characterized by a negative income elasticity of demand, meaning that demand decreases as consumer income increases.

In Order to Prove That Macaroni Is an Inferior Good,we