Ask Question
22 August, 17:57

If income is falling and income elasticity of demand for a particular good is negative​, then demand for the good​ is:

+4
Answers (1)
  1. 22 August, 21:07
    0
    Increased and inferior good

    Explanation:

    Since the income elasticity of demand is negative which reflect the inferior good and if the income elasticity of demand is positive then it is to be called as a normal good

    In the case of normal goods, it shows a direct relationship between income and the demand for goods. It means that if the income rises, the demand is also rising and if the income falls, then the demand is also falls

    And, in the case of inferior goods, it shows an inverse relationship between the income and the demand for goods. It means that if the income increases, the demand is decreasing and if the income decreases, then the demand increased
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If income is falling and income elasticity of demand for a particular good is negative​, then demand for the good​ is: ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers