Inferior goods have an income elasticity of demand that is _____
A)positive.
B)negative.
C)zero.
D)greater than 1 in absolute value.
E)equal to 1 in absolute value.

Name: Inferior goods have an income elasticity of demand that is _____ A)positive. B)negative. C)zero. D)greater than 1 in absolute value. E)equal to 1 in absolute value.
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Question

Quizplus · Accepted Answer

Inferior goods are those for which the quantity demanded decreases as income increases, thus making the income elasticity of demand negative.

Inferior Goods Have an Income Elasticity of Demand That Is