If a Good Is Inferior,its

question 126

Multiple Choice

If a good is inferior,its

• A)Cross-price elasticity is negative.
• B)Price elasticity of demand is negative.
• C)Income elasticity of demand is positive.
• D)Income elasticity of demand is negative.

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Definitions:

Marginal External Cost

The additional cost society bears due to one more unit of a good or service being produced, not included in the producer's cost.

Aphrodisiacs

Substances that increase sexual desire or libido, these can be foods, drugs, or other agents.

Negative Externality

A cost that affects a party who did not choose to incur that cost or benefit, often seen in environmental pollution affecting bystanders not involved in the production or consumption causing the pollution.

Loud Music

High amplitude sound that can be enjoyable in some contexts but may lead to hearing damage or stress in others.