How is price elasticity of demand for inferior goods different from other goods?

Economics Elasticity Of Demand Questions



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How is price elasticity of demand for inferior goods different from other goods?

The price elasticity of demand for inferior goods is different from other goods because it is typically negative. This means that as the price of an inferior good decreases, the quantity demanded actually decreases as well. In contrast, for normal goods, the price elasticity of demand is typically positive, meaning that as the price decreases, the quantity demanded increases.