Income elasticity measures the change in quantity demanded of some product with respect to changes in
A) its price.
B) the demand of the product.
C) the price of another related product.
D) households' income.
E) the supply of the product.

Question

Quizplus · Accepted Answer

Income elasticity measures the responsiveness of demand for a product with respect to changes in households' income. It shows the percentage change in quantity demanded of a product due to a percentage change in income.

Income Elasticity Measures the Change in Quantity Demanded of Some