Critical Thinking Question #23

Income effects depend on the income elasticity of demand for each good that you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?

Then find your own real-world example (please base it on a real-world example)

Review the examples in our textbook on pages 141 143 (Kimberly and Sergei). Then find your own real-world example