When income elasticity of demand is a negative number,one can correctly conclude that:
A)the good is a normal good.
B)the good is an inferior good.
C)the good is a substitute.
D)the good is a complement.
E)total revenue will decrease when the price increases.

Question

Quizplus · Accepted Answer

A negative income elasticity of demand indicates that as income increases, the quantity demanded of the good decreases. This is a characteristic of inferior goods, which are goods that consumers demand less of as their incomes rise.

When Income Elasticity of Demand Is a Negative Number,one Can