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A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased:

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Question:

A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased:

A.

Rises

B.

Falls

C.

Remains unchanged

D.

None of the above

Answer» a. Rises

Note: The above multiple-choice question is for all general and Competitive Exams in India.