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:

Employment Discrimination

Unfair treatment of employees based on race, gender, age, religion, national origin, physical or mental disability, or sexual orientation, rather than job performance and qualifications.

Average Wage

The median wage earned by workers, calculated by dividing the total payroll by the number of wage earners.

Personal Prejudice

An individual's preconceived opinion or bias against something or someone without reasonable justification.

Firm Profits

The financial gain a company receives after subtracting all its costs from its total revenue.