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

Economics- Phase (I & II) Demand and Supply for Money

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

Positive

Zero

Negative

Infinite

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Explanation:

In the case of an inferior good, the income elasticity of demand is Negative. A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes

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