Question
For an inferior good with a downward sloping demand curve:
Answer: Option A
:
A
A.For an inferior good demand falls as income increases. The quantity demanded falls as price increases; this means the income elasticity and the price elasticity will both be negative.
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:
A
A.For an inferior good demand falls as income increases. The quantity demanded falls as price increases; this means the income elasticity and the price elasticity will both be negative.
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