Multiple Choice
Which one of the following must be true if demand is income inelastic?
A) A large percentage increase in income will result in a small percentage increase in quantity demanded.
B) A small percentage increase in income will result in a large percentage increase in quantity demanded.
C) An increase in income will decrease the quantity demanded.
D) The good is an inferior good.
E) A percentage rise in price increases the quantity demanded by a smaller percentage.
Correct Answer:
Verified
Correct Answer:
Verified
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