4395EconomicsMedium
Inferior goods have ________ and luxury goods have ________?
APositive income elasticities, negative income elasticities
BNone of the above
Cincome elasticity greater than 1, negative income elasticities
Dnegative income elasticity income elasticity greater than 1
Correct answer
D. negative income elasticity income elasticity greater than 1
Explanation
The correct answer is negative income elasticity income elasticity greater than 1.