An Inferior Good

question 16

Multiple Choice

An inferior good

• A)has a negative income elasticity.
• B)is one where the demand curve shifts to the left when income goes up.
• C)exists only in theory.
• D)is a low-quality good.
• E)Both a and b are true.

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Definitions:

Negotiability

The ability of a document or instrument to be legally and freely transferred from one party to another.

Contractual Assignment

The transfer of rights or duties under a contract from one party to another.

Negotiable Instrument

A document in writing that ensures a certain sum of money will be paid, whether immediately upon request or at a predetermined date, with the document specifying the individual responsible for the payment.

Particular Fund

A specific pool of money that is designated for a particular purpose or investment strategy.