If the Income Elasticity of Demand for a Good Is

question 11

True/False

If the income elasticity of demand for a good is negative, then the good must be an inferior good.

---

Definitions:

Capital

Assets used for the production of goods and services, such as buildings, machinery, and equipment.

Purchase Price

The amount of money that is paid to buy a good, service, or asset.

Rental Price

The cost associated with leasing or renting a property, such as a house, apartment, or commercial space.

Capital Stock

The total amount of physical goods or assets that a company or country uses in the production of goods and services.