An inferior gooda) has a negative income elasticity b) is one where the demand curve shifts to the left when income goes upc) exists only in theoryd) is low-quality goode) both a and b are true

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Serenity

7 November, 16:19

An inferior gooda) has a negative income elasticity b) is one where the demand curve shifts to the left when income goes upc) exists only in theoryd) is low-quality goode) both a and b are true

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Yu · Answer 1

Answer: Has a negative income elasticity.

Explanation:

An inferior good demand would drop with an increase in income of the consumers of it, therefore inferior good normally experience negative income elasticity of demand. This drop occurs because, as consumers earn more they would now love to buy original goods.