Suppose the Income Elasticity of Demand Is -0

Multiple Choice

Suppose the income elasticity of demand is -0.5 for good X.This implies that a 5% decrease in income will cause the quantity demanded of good X to

A) increase by 2.5%,and X is an inferior good.
B) decrease by 2.5% and X is a normal good.
C) increase by 10% and X is an inferior good.
D) decrease by 10% and X is a normal good.