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In case of inferior goods the income elasticity is

This question belongs to Commerce Economics
Economics
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In case of inferior goods, the income elasticity is

Answer & Solution
Correct Answer: Option C
In case of inferior goods, the income elasticity 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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