If the quantity of carrots demanded increases by a small percentage when income increases by a large amount, we know that the demand for carrots is
A)price elastic.
B)price inelastic.
C)income inferior.
D)income elastic.
E)income inelastic.

Question

Quizplus · Accepted Answer

The demand for carrots is income inelastic because the quantity demanded increases by a small percentage despite a large increase in income.

If the Quantity of Carrots Demanded Increases by a Small