Question 4
[Maximum number: 1]
The price of a good rises by 5% and the quantity of it demanded rises by 3%. At the same time, the incomes of consumers of the good rise by 4%.
The law of demand appears not to be working in this case.
What is the most likely explanation?
A
Other things did not remain equal.
B
The demand for the good was price inelastic.
C
The real price of the good fell.
D
The time period was the very short run.