Question

As income increases, the consumer will go in for superior goods and consequently the demand for inferior goods will fall. This means.

• A. Income elasticity of demand less than one
• B. Negative income elasticity of demand
• C. Zero income elasticity of demand
• D. Unitary income elasticity of demand

Answer 1

The correct option is B Negative income elasticity of demand

In case of inferior goods, there will be negative income elasticity $(Ey<0)$.