Asked by America Becerra on Jul 09, 2024
Verified
If income elasticity for a good or service is ______,then we can say that the good or service is _____.
A) negative;inferior
B) negative;normal
C) positive;inferior
D) zero;normal
Income Elasticity
A measure of how much the demand for a good or service changes with a change in consumers' income.
- Using income elasticity, differentiate normal goods from inferior goods.
Verified Answer
DE
Deirdre EspositoJul 10, 2024
Final Answer :
A
Explanation :
If the income elasticity for a good or service is negative, it means that as income increases, the demand for that good or service decreases, which is characteristic of an inferior good.
Learning Objectives
- Using income elasticity, differentiate normal goods from inferior goods.