If a good is income elastic, it follows that the percentage change in quantity demanded of a good
A)is less than the percentage change in income.
B)is greater than the percentage change in income.
C)is equal to the percentage change in income.
D)is greater than the percentage change in the price of another good.
E)none of the above

Question

Quizplus · Accepted Answer

When a good is income elastic, it means that the percentage change in quantity demanded of the good is greater than the percentage change in income. This indicates that as people's income increases, they buy proportionally more of this good, and vice versa.

If a Good Is Income Elastic, It Follows That the Percentage