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If a good has negative income elasticity and positive price elasticity of demand, it is a
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- giffen good
- normal good
- superior good
- an inferior good
- giffen good
Correct Option: A
A negative income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of inferior good which has positive price elasticity of demand. It is a good which people paradoxically consume more of as the price rises, violating the law of demand. When price goes up, the quantity demanded also goes up.
