A product that has a negative income elasticity of demand is ________ good.
A) a normal
B) a negative
C) a complementary
D) an inferior
E) a substitute

Question

Quizplus · Accepted Answer

A product with a negative income elasticity of demand is an inferior good. This means that as consumers' incomes increase, they will demand less of this product, opting for more expensive, higher-quality alternatives.

A Product That Has a Negative Income Elasticity of Demand