Is the income elasticity of demand different for normal and inferior goods?

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2026-08-26 19:35

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Yes, the income elasticity of demand is different for normal and inferior goods. Normal goods have a positive income elasticity of demand, meaning that as income increases, the demand for these goods also increases. In contrast, inferior goods have a negative income elasticity of demand, indicating that as income rises, the demand for these goods decreases.

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