Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 5 - Elasticity and Its Application - Questions For Review - Page 108: 6

Answer

A good with income elasticity less than zero is inferior because when income increase quantity demanded responds inversely, or declines.

Work Step by Step

Understand the relationship that normal goods and inferior goods have and the memorize how they function. Conceptualize the idea. If you have more money wouldn't you buy better quality products.
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