If income elasticity for a good or service is ______,then we can say that the good or service is _____.
A)negative;inferior
B)negative;normal
C)positive;inferior
D)zero;normal

Question

Quizplus · Accepted Answer

If the income elasticity for a good or service is negative, it means that as income increases, the demand for that good or service decreases, which is characteristic of an inferior good.

If Income Elasticity for a Good or Service Is ______,Then