If a good has negative income elasticity and positive price elasticity of demand, it is a

Options

A. giffen good
B. normal good
C. superior good
D. an inferior good

Answer

D

Explanation

A negative Income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of in ferior good which has positive price elasticity of demand. It is a good which people para doxically consume more of as the price rises, violating the law of demand. When price goes up, the quantity demanded also goes up.