Which of the following statements best describes the relationship between inferior goods and their income elasticity of demand?

Inferior goods are products that people buy less of when their income increases, which means they have a negative income elasticity of demand. This means that as people earn more money, they tend to purchase less of these goods because they can afford better alternatives. For example, if someone usually buys instant noodles because they are cheap, they might stop buying them once they get a higher-paying job and can afford to eat at nicer restaurants. This relationship shows that inferior goods are linked to lower incomes, while demand for them decreases as income rises. Understanding this concept helps businesses and economists predict how changes in consumer income can affect sales of different products.