An inferior good has an income elasticity of demand that is
A) positive.
B) negative.
C) positive but less than 1.
D) zero.

Name: An inferior good has an income elasticity of demand that is A) positive. B) negative. C) positive but less than 1. D) zero.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An inferior good is one where as income increases, demand for the good decreases. This means that the income elasticity of demand for an inferior good is negative.

An Inferior Good Has an Income Elasticity of Demand That