An Inferior Good Has a ________ Income Elasticity of Demand

question 71

Multiple Choice

An inferior good has a ________ income elasticity of demand and quantity demanded ________ as income rises.

• A)negative; increases
• B)negative; decreases
• C)positive; increases
• D)positive; decreases

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Definitions:

Holder in Due Course

A party that has acquired a negotiable instrument in good faith and without notice of any defect in title.

Maker

The individual or entity that creates or produces an item or is the original writer of a check or promissory note.

Without Recourse

A term indicating that the holder of a financial instrument cannot demand payment from the issuer in the case of default.

Banking Day

A business day during which financial institutions are open for business with the public.