A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2011 · Q61 Mark
It was estimated in 2010 that milk had an income elasticity of demand of -0.6. What can be concluded about milk from this information?
AIt accounts for only a small proportion of household expenditure.
BIt has very few substitutes.
CHousehold expenditure on milk will decrease if the price of milk increases.
DIt is an inferior good.
✓ Correct answer
D: It is an inferior good.
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