What type of income elasticity do inferior goods exhibit compared to luxury goods?

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Negative income elasticity for inferior goods and income elasticity exceeding 1 for luxury goodsIncome elasticity above 1 for inferior goods and negative income elasticity for luxury goodsPositive income elasticity for inferior goods and negative income elasticity for luxury goodsNone of the given choices

Explanation

Inferior goods typically have a negative income elasticity, meaning demand decreases as income rises, whereas luxury goods have an income elasticity greater than one, indicating demand increases more than proportionally with income.