contestada

income effects depend on the income elasticity of demand for each good that you buy. if one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy

Respuesta :

Answer:

it would have a positive income elasticity and it is a normal good

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

Inferior goods are goods whose demand falls when income rises and increases when income falls.

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