In the case of an inferior good the income elasticity of demand is:

CA Foundation · Business Economics · MTP · September 2024
In the case of an inferior good the income elasticity of demand is:
(A) A. positive
(B) B. zero
(C) C. negative
(D) D. infinite

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. negative

Topics: Theory of Demand and Supply

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic