Question

If the income elasticity of a particular good is negative 0.2, it would be considered Group of answer choices a normal good. an elastic good. a superior good. an inferior good.

Answer 1

inelastic good

Step-by-step explanation:

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

If the absolute value of income elasticity of demand is greater than one, it means demand is elastic

it is inelastic if it is less than 1.

since the absolute value of elasticity this good is 0.2, the good as an inelastic demand.

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.