Goods having a negative calculated income elasticity are...
A) superior goods
B) producers' goods
C) nondurable goods
D) inferior goods
E) none of the above

Question

Quizplus · Accepted Answer

Goods with a negative income elasticity are called inferior goods. This means that as income increases, the demand for these goods decreases. Examples of inferior goods include generic brands of food or clothing, as opposed to more expensive, brand-name options.

Goods Having a Negative Calculated Income Elasticity Are