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:

Assets And Liabilities

Assets are resources owned by a company that have economic value, while liabilities are obligations the company owes to others, reflecting the company's debts or financial responsibilities.

Unearned Rent Revenue

Income received for rent that has been paid in advance by a tenant but not yet earned by the landlord.

Wages Payable

Wages payable is a liability account that records the amounts owed to employees for work that has been performed but not yet paid.

Capital Lease Contracts

Lease agreements that transfer substantially all risks and rewards of ownership from the lessor to the lessee, effectively treated as a purchase.