The Income Consumption Curve Has A Negative Slope When

The quantity demanded decreases with income the income elasticity of demand is negative the good is an inferior good.

The income consumption curve has a negative slope when. Show transcribed image text. 3 if both goods are inferior the income consumption curve has a negative slope. Previous question next question transcribed image text from this question. Also the price effect for x 2 is positive while it is negative for x 1.

This question hasn t been answered yet ask an expert. Icc 1 curve indicates the more proportionate increase in commodity 1 and icc 2 curve indicates the more proportionate increase in commodity 2. In figure 3 the income consumption curve bends back on itself as with an increase income the consumer demands more of x 2 and less of x 1. The income consumption curve in this case is negatively sloped and the income elasticity of demand will be negative.

Negative sloped income consumption curve. If income effect for good x is negative income consumption curve will slope backward to the left as icc in fig 8 31. The slope of the icc is negative in the case of inferior goods.