Deb's income has just risen from $950 per week to $1,050 per week. As a result, she decides to increase the number of movies she attends each month by 5 per cent. Her demand for movies is
A) represented by a vertical line.
B) income elastic.
C) income inelastic.
D) represented by a horizontal line.

Question

Quizplus · Accepted Answer

Deb's demand for movies is income inelastic because the percentage increase in the number of movies she attends (5%) is less than the percentage increase in her income (approximately 10.5%).

Deb's Income Has Just Risen from $950 Per Week to $1,050