Economy, asked by bodakeshruti3428, 5 months ago

Necessary goods have negative income elasticity

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Answered by vandanajha90667
2

Answer:

As income rises, the proportion of total consumer expenditures on necessity goods typically declines. Inferior goods have a negative income elasticity of demand; as consumers' income rises, they buy fewer inferior goods. A typical example of such type of product is margarine, which is much cheaper than butter.

Answered by annoushkamj
0

Answer:

is that a question or statement?

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