Which of the following goods is most likely to have a negative income elasticity of demand?
A)Automobiles
B)Bargain brand noodles
C)Shoes
D)Fine Jewelry

Question

​Which of the following goods is most likely to have a negative income elasticity of demand?
A)​Automobiles
B)Bargain brand noodles
C)Shoes
D)​Fine Jewelry

Quizplus · Accepted Answer

Bargain brand noodles are likely to have a negative income elasticity of demand because as consumers' income increases, they tend to buy less of these cheaper, inferior goods, opting instead for higher-quality or luxury items.

​Which of the Following Goods Is Most Likely to Have

Which of the Following Goods Is Most Likely to Have