A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2015 · Q71 Mark
An individual reacts to a 5% increase in the price of good X by increasing the proportion of his income that he spends on good X from 2% to 3%. If there are no other changes, what can be concluded from this about the individual's demand for good X?
AIt is income-elastic.
BIt is income-inelastic.
CIt is price-elastic.
DIt is price-inelastic.
✓ Correct answer
D: It is price-inelastic.
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