if-a-good-has-an-income-elasticity-of-demand-of-08-what-does-this-imply-about-th

Question

If a good has an income elasticity of demand of -0.8, what does this imply about the good?

Accepted Answer

It is an inferior good.

Answer

It is a normal necessity.

Answer

It is a necessity.

Answer

It is a normal luxury.