Which term refers to goods that have demand that does not change significantly with income fluctuations?

The term that describes goods whose demand remains relatively stable despite changes in income is Income Inelastic Goods. This concept is essential in understanding consumer behavior and market dynamics. Income inelastic goods are typically basic necessities, meaning that consumers will continue to purchase them regardless of their financial situation. These goods may include essentials like food, basic clothing, and healthcare.

Inelastic demand signifies that the percentage change in quantity demanded is less than the percentage change in income. Therefore, even if a consumer's income rises or falls, their consumption of these goods remains largely unchanged. This behavior contrasts with luxury goods, which have a high income elasticity, meaning their demand tends to increase significantly as income rises and decrease when income falls.

Understanding these distinctions helps in analyzing market trends and consumer spending habits, which are critical components in the fields of economics and banking. This knowledge is particularly useful when considering how various economic factors can influence demand for different types of goods.