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Given below are two statements – one is labelled as Assertion (A) and the other is labelled as Reason (R) :
Assertion (A) : For certain goods, the expenditure by the consumers decreases.
Reason (R) : For such goods, the income elasticity of demand is high.
In the light of the above two statements choose the correct option :
When income of a consumer increases, the demand for inferior goods decreases. This is called negative income elasticity of demand.