Answer to Question #221325 in Microeconomics for Lebogang

Question #221325

The income of demand for luxury good is greater than one. This means that the

A. percentage change in price is greater than the percentage change in quantity demanded.

B. percentage change in quantity demanded is smaller than the percentage change in income.

C. percentage change in quantity demanded is equal to the percentage change in income.

D. Percentage change in quantity demanded is greater than the percentage change in income.

Expert's answer

D. Percentage change in quantity demanded is greater than the percentage change in income.