- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Topics in Demand and Supply Analysis
- Subject 3. Substitution Effect, Income Effect, Normal and Inferior Goods
CFA Practice Question
The income elasticity of demand for an inferior good is ______.
B. less than zero
C. greater than zero
A. equal to zero
B. less than zero
C. greater than zero
Correct Answer: B
User Contributed Comments 2
| User | Comment |
|---|---|
| nabilhjeily | what about the absolute value guys |
| gill15 | Thats only for Price Elasticity - Not Income Elasticity, Cross elasticity |