The income elasticity of demand is most likely to be negative for "used clothing".

Here's why:

Income elasticity of demand measures how the quantity demanded changes as consumer income changes. If the income elasticity of demand is negative, it means that as income increases, the demand for a product decreases.

This is typically true for inferior goods, which are goods that see a decrease in demand as income increases. Used clothing is often considered an inferior good because as people's income increases, they are more likely to buy new clothing instead of used clothing.

So, when people have more income, they tend to buy less used clothing, making its income elasticity of demand negative.

On the other hand, goods like computer software, basketballs, and bread are likely to have positive income elasticity

Question

The income elasticity of demand is most likely to be negative for "used clothing".

Here's why:

Income elasticity of demand measures how the quantity demanded changes as consumer income changes. If the income elasticity of demand is negative, it means that as income increases, the demand for a product decreases.

This is typically true for inferior goods, which are goods that see a decrease in demand as income increases. Used clothing is often considered an inferior good because as people's income increases, they are more likely to buy new clothing instead of used clothing.

So, when people have more income, they tend to buy less used clothing, making its income elasticity of demand negative.

On the other hand, goods like computer software, basketballs, and bread are likely to have positive income elasticity

Knowee AI · Accepted Answer

The income elasticity of demand is most likely to be negative for "used clothing".

Here's why:

Income elasticity of demand measures how the quantity demanded changes as consumer income changes. If the income elasticity of demand is negative, it means that as income increases, the demand for a product decreases.

This is typically true for inferior goods, which are goods that see a decrease in demand as income increases. Used clothing is often considered an inferior good because as people's income increases, they are more likely to buy new clothing instead of used clothing.

So, when people have more income, they tend to buy less used clothing, making its income elasticity of demand negative.

On the other hand, goods like computer software, basketballs, and bread are likely to have positive income elasticity

For which product is the income elasticity of demand most likely to be negative?Multiple Choicecomputer softwareused clothingbasketballsbread

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