CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

If a good is an inferior good, then ______
A. its demand curve will be upward-sloping.
B. its income effect reinforces the substitution effect.
C. its income elasticity is negative.
Explanation: As income goes up, the consumption of an inferior good will actually decrease.

User Contributed Comments 2

User Comment
gill15 Giffen goods === UPWARD SLOPING DEMAND
kjw88 & Veblen goods
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