Question

If income is falling and income elasticity of demand for a particular good is negative​, then demand for the good​ is:

Answer 1

Increased and inferior good

Step-by-step explanation:

Since the income elasticity of demand is negative which reflect the inferior good and if the income elasticity of demand is positive then it is to be called as a normal good

In the case of normal goods, it shows a direct relationship between income and the demand for goods. It means that if the income rises, the demand is also rising and if the income falls, then the demand is also falls

And, in the case of inferior goods, it shows an inverse relationship between the income and the demand for goods. It means that if the income increases, the demand is decreasing and if the income decreases, then the demand increased