Income inelastic demand means that the income elasticity of demand is:
A) between 0 and 1.
B) below 0.
C) between 1 and 2
D) at 0.

Question

Quizplus · Accepted Answer

Income inelastic demand refers to a situation where the demand for a good or service does not change significantly as income changes. This is characterized by an income elasticity of demand between 0 and 1, indicating that demand increases by a smaller percentage than the increase in income.

Income Inelastic Demand Means That the Income Elasticity of Demand