Income elasticity of demand describes:
A) how much the quantity demanded changes in response to a change in consumers' incomes.
B) which way the demand curve shifts in response to a change in price.
C) how much the quantity demanded changes in response to a change in price.
D) how quickly the market will change in response to a change in consumers' incomes.

Question

Quizplus · Accepted Answer

Income elasticity of demand measures the percentage change in quantity demanded in response to a percentage change in income. It helps understand how sensitive demand is to changes in income levels.

Income Elasticity of Demand Describes