Which One of the Following Must Be True If Demand

question 111

Multiple Choice

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.

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Definitions:

Variances of Stocks

Measures of the dispersion of returns for a given stock, used to assess the risk associated with holding the stock.

Return on Stock

The gain or loss on an investment in stock, represented as a percentage of the investment's initial cost.

Unsystematic Risk

The risk associated with a specific issuer or a particular industry sector, unlike systemic risk, which impacts the entire market.

Increasing Market

A market trend characterized by rising stock prices and generally optimistic investor sentiment, often associated with economic growth.