The income elasticity of demand for inferior goods is Options: A . &nbspless than zero B . &nbspequal to one C . &nbspless than one D . &nbspgreater than one

The income elasticity of demand for inferior goods is

Question

The income elasticity of demand for inferior goods is

Options:

A . less than zero

B . equal to one

C . less than one

D . greater than one

Answer: Option A
Answer: (a)Inferior goods have a negative(less than 0) income elasticity of demand meaning that demand falls as income rises.

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