If a decrease in income results in a decrease in the quantity demanded for a product, the product is ________, and the value of the income elasticity of demand is ________.
A) a normal good; positive
B) a normal good, negative
C) an inferior good; positive
D) an inferior good; negative

Question

Quizplus · Accepted Answer

When a decrease in income leads to a decrease in the quantity demanded, the product is considered a normal good, and the income elasticity of demand is positive, indicating that demand moves in the same direction as income.

If a Decrease in Income Results in a Decrease in the Quantity