If a Good Is an Inferior Good,then Its

question 115

Multiple Choice

If a good is an inferior good,then its

• A) demand curve will be upward sloping.
• B) income effect reinforces the substitution effect.
• C) income elasticity is negative.
• D) Engel curve cannot be drawn.

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Definitions:

Perfected

In legal terms, it refers to a state where an interest (such as a lien or security interest) is made legally enforceable and established in a manner that it has priority over the claims of others.

Collateral

Assets that are pledged as security for the repayment of a loan.

Debtor Defaults

Occurs when a debtor fails to meet the obligations of a loan or financial agreement.

Repossess Collateral

The act of taking back goods or property by a creditor from the borrower when the borrower fails to meet the terms of the loan agreement.