Which one of the following must be true if demand is income elastic?
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 change in price will lead to a larger percentage change in quantity demanded.
Correct Answer:
Verified
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