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

Question

Quizplus · Accepted Answer

If the percentage change in quantity demanded of a good is less than the percentage change in income, then the good is considered to be income inelastic. This means that consumers are not very responsive to changes in their income when it comes to purchasing this particular good, and the demand for the good is relatively unaffected by changes in income.

If the Percentage Change in Quantity Demanded of a Good