If your income increased by 5% and the quantity of jeans you demanded decreased by 4%, your income elasticity of demand for jeans is:

Name: If your income increased by 5% and the quantity of jeans you demanded decreased by 4%, your income elasticity of demand for jeans is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Income elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in income. Here, it is -4% / 5% = -0.8, indicating jeans are an inferior good.

If Your Income Increased by 5% and the Quantity of Jeans