The _____ elasticity of demand is a measure of how responsive buyers are to changes in income, and a _____ value indicates that a good is inferior.
A) price; negative
B) income; positive
C) price; positive
D) income; inferior

Question

Quizplus · Accepted Answer

Income elasticity of demand measures how demand changes with income changes. A negative value indicates an inferior good, as demand decreases when income increases.

The _____ Elasticity of Demand Is a Measure of How