ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    Income elasticity of an inferior good is

    always
    A Negative Correct Answer Incorrect Answer
    B Above unity Correct Answer Incorrect Answer
    C Between 0 and unity Correct Answer Incorrect Answer
    D Between (-4,4) Correct Answer Incorrect Answer
    E In the closed interval [-1,1] Correct Answer Incorrect Answer

    Solution

    An inferior good is one whose demand drops when people's incomes rise. So, income elasticity of an inferior good is always negative.

    Practice Next
    More Research Questions
    ask-question