If a product is an inferior good, then its income elasticity of demand is
A) indeterminate.
B) negative.
C) zero.
D) positive.
E) undefined.

Name: If a product is an inferior good, then its income elasticity of demand is A) indeterminate. B) negative. C) zero. D) positive. E) undefined.
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Question

Quizplus · Accepted Answer

An inferior good is one that consumers demand less of as their income increases. Therefore, the income elasticity of demand for an inferior good is negative.

If a Product Is an Inferior Good, Then Its Income