Income elasticity of demand will be zero when given change in income brings ______________.
A
a less than proportionate change in quantity demand
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B
a more than proportionate change in quantity demanded
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C
the same proportionate change in demand
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D
no change in demand
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Solution
The correct option is C no change in demand A zero income elasticity of demand occurs when an increase in income is not associated with a change in the demand of a good.