If income elasticity is positive,we could conclude that the product in question is an inferior good.

Name: If income elasticity is positive,we could conclude that the product in question is an inferior good.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

If income elasticity is positive, it means that as income increases, the demand for the product also increases. This is indicative of a normal good, not an inferior good. Inferior goods have negative income elasticity, meaning that as income increases, the demand for those goods decreases.

If Income Elasticity Is Positive,we Could Conclude That the Product