Income elasticity of demand measures how responsive the:
A)quantity demanded of a good is to changes in income.
B)quantity demanded of one good is to changes in demand for another good.
C)price of good is to price changes of another good.
D)quantity supplied of one good is to price changes of another good.

Question

Quizplus · Accepted Answer

Income elasticity of demand measures how much the quantity demanded of a good changes in response to a change in consumers' income levels. It is calculated as the percentage change in quantity demanded divided by the percentage change in income.

Income Elasticity of Demand Measures How Responsive The