A good is regarded as being an "inferior good" when
A) its price elasticity of demand is greater than one everywhere along its price range
B) its price elasticity of demand is less than one everywhere along its price range
C) the income elasticity of demand for the good is negative
D) it is a low-quality good even at low prices
E) the demand for the good is zero at any price

Question

Quizplus · Accepted Answer

Inferior goods are characterized by a negative income elasticity of demand, meaning that as consumers' income increases, the demand for these goods decreases.

A Good Is Regarded as Being an "Inferior Good" When