For inferior goods, income elasticity of demand is generally:

CA Foundation · Business Economics · MTP · May 2026
For inferior goods, income elasticity of demand is generally:
(A) A. Positive
(B) B. Negative
(C) C. Zero
(D) D. Infinite

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Negative

Topics: Theory of Demand and Supply

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