A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2025 · Q71 Mark

When can a product be said to have a negative income elasticity of demand?

AWhen it is a luxury good.

BWhen it is a necessity good.

CWhen it is a normal good.

DWhen it is an inferior good.

✓ Correct answer

D: When it is an inferior good.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2025 Paper 1 Variant 2, question 7.

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