When economists look at the percentage change in quantity demanded generated by a change in income, they are looking at:
A) price elasticity of demand.
B) income elasticity of demand.
C) price elasticity of supply.
D) cross elasticity of demand.
E) cross elasticity of supply.

Question

Quizplus · Accepted Answer

The percentage change in quantity demanded generated by a change in income is known as income elasticity of demand, which measures the responsiveness of quantity demanded to a change in income. Therefore, the correct answer is B.

When Economists Look at the Percentage Change in Quantity Demanded