If the income elasticity of demand for a good is negative
A) changes in income have no effect on consumption of the good.
B) a decrease in income causes consumption of the good to fall.
C) an increase in income causes consumption of the good to fall.
D) consumption of the good may increase or decrease without any change in income.
E) and if the good's price falls, income also falls.

Question

Quizplus · Accepted Answer

When the income elasticity of demand for a good is negative, it means the good is an inferior good, so an increase in income causes consumption of the good to fall.

If the Income Elasticity of Demand for a Good Is