Which one of the following must be true if demand is income inelastic?
A)A large percentage increase in income will result in a small percentage increase in quantity demanded.
B)A small percentage increase in income will result in a large percentage increase in quantity demanded.
C)An increase in income will decrease the quantity demanded.
D)The good is an inferior good.
E)A percentage rise in price increases the quantity demanded by a smaller percentage.

Question

Quizplus · Accepted Answer

If demand is income inelastic, it means that a change in income has a relatively small effect on the quantity demanded. This implies that a large percentage increase in income would result in a small percentage increase in quantity demanded.

Which One of the Following Must Be True If Demand