If the income elasticity of demand of a good is negative, we can conclude that the good is:
A) a normal good.
B) an inferior good.
C) a substitute.
D) a complement.

Question

Quizplus · Accepted Answer

A negative income elasticity of demand indicates that as income increases, the demand for the good decreases. This is characteristic of an inferior good, which is a good that consumers demand less of as their income increases and more of as their income decreases.

If the Income Elasticity of Demand of a Good Is