If the income elasticity of demand for a good is negative, the good is an inferior good.

Name: If the income elasticity of demand for a good is negative, the good is an inferior good.
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Question

If the income elasticity of demand for a good is negative, the good is an inferior good.
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Quizplus · Accepted Answer

If the income elasticity of demand for a good is negative, it means that as income increases, the quantity demanded of the good decreases. This is characteristic of inferior goods, which are goods for which demand decreases as income increases.

If the Income Elasticity of Demand for a Good Is