Multiple Choice
Which one of the following is true if demand is income elastic?
A) The percentage change in income is greater than the percentage change in quantity demanded.
B) The percentage change in income is smaller than the percentage change in quantity demanded.
C) An increase in income decreases demand.
D) The good is an inferior good.
E) A rise in price increases the quantity demanded.
Correct Answer:
Verified
Correct Answer:
Verified
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