A good with an income elasticity of demand less than 0 is classified as?

A good with an income elasticity of demand less than 0 is classified as an inferior good. This classification arises from the relationship between changes in consumer income and the demand for that good. When income increases, the demand for inferior goods typically decreases because consumers tend to shift their spending towards higher-quality alternatives or more desirable goods.

For example, when individuals experience an increase in income, they may stop purchasing lower-quality groceries or budget brands in favor of more premium products. Therefore, the negative income elasticity indicates that as consumer income rises, the quantity demanded for the inferior good declines, confirming its classification as such.

This distinction is vital in understanding consumer behavior in economics, as it highlights how income changes can influence demand for different types of goods.