Question

true/false : price elasticity of demand for good X is positive. We conclude that good X is an inferior good. Explain why.

Answer 1

False

First of all it should be understood that price elasticity of demand helps in finding that whether the good is elastic or inelastic nature

It doesn't help in finding that whether the good is inferior good or normal good

The normal good and inferior goods is well explain by the income elasticity of demand which states that as the income of a consumer rises, the quantity demanded by him also increase

For inferior good as the income level rises the consumption decreases