An Inferior Good Has an Income Elasticity of Demand That

question 120

Multiple Choice

An inferior good has an income elasticity of demand that is

• A) positive.
• B) negative.
• C) positive but less than 1.
• D) zero.

---

Definitions:

Industrialized Agriculture

An approach to farming that relies on heavy machinery, chemical inputs, and large-scale monoculture practices to increase productivity and output.

Developed Countries

Nations that have a high level of industrialization, a high standard of living, and a high Human Development Index (HDI), marked by well-developed infrastructure, healthcare, and education systems.

Domesticated Animal Species

Animal species that have been selectively bred and genetically adapted over generations to live closely with humans, often for work, food, or as pets.

Animal Products

Goods derived from the bodies of animals, including meat, dairy, wool, and leather.