Income increases from £20,000 p.a. to £22,000 p.a. Quantity demanded per year increases from 5000 to 6000 units. Which of the following is correct? O a. The good is inferior O b. Demand is price elastic O c. Demand is price inelastic d. The good is normal

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 4PA: A price change causes the quantity demanded of a good to decrease by 30 percent, while the total...
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Income increases from £20,000 p.a. to £22,000 p.a.
Quantity demanded per year increases from 5000
to 6000 units. Which of the following is correct?
O a. The good is inferior
O b. Demand is price elastic
O c. Demand is price inelastic
d. The good is normal
Transcribed Image Text:Income increases from £20,000 p.a. to £22,000 p.a. Quantity demanded per year increases from 5000 to 6000 units. Which of the following is correct? O a. The good is inferior O b. Demand is price elastic O c. Demand is price inelastic d. The good is normal
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