If the percentage change in quantity demanded of a good is equal to the percentage change in buyer's income, then the good is said to be
A)income elastic.
B)income inelastic.
C)income unit elastic.
D)price unit elastic.
E)price inelastic.

Question

Quizplus · Accepted Answer

When the percentage change in quantity demanded of a good is equal to the percentage change in buyer's income, the good is said to be income unit elastic. This means that the income elasticity of demand is equal to 1.

If the Percentage Change in Quantity Demanded of a Good