Economics 9708 · AS & A Level · Income elasticity of demand

Income elasticity of demand — practice question

Which statement is correct for a good whose income elasticity of demand is $-0.2$?

  • AWhen income rises less of the good is bought.
  • BWhen income rises more of the good is bought.
  • CWhen price falls more of the good is bought.
  • DWhen price rises less of the good is bought.

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