If Quantity Demanded of a Good Falls by 2% When

question 12

Multiple Choice

If quantity demanded of a good falls by 2% when income falls by 10%, the good's demand is

• A) price sensitive.
• B) income-inelastic.
• C) income-elastic.
• D) price insensitive.

---

Definitions:

Industry Leader

A company or organization that is the most advanced or successful in its sector, often setting standards and trends.

Handling Charges

Fees assessed for the process of managing or dealing with goods, typically covering services like packing, shipping, and delivery.

Online Shoe Retailer

A business that sells shoes through the internet, enabling customers to purchase footwear online.

All-inclusive Vacation

A holiday package which includes not just accommodation but also food, drinks, activities, and entertainment, often at a resort.