The income elasticity of an inferior good is….

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The income elasticity of an inferior good is

Options :-

1. negative because as people get richer they increase their purchases of the good by smaller and smaller amounts
2. 1 because the increased income offsets the desire to consume less of the good because it is inferior
3. greater than 1 because the richer you get, the less you consume of the good
4. negative because higher income leads to a reduction in the amount consumed of the product
5. None of the above

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