When economists look at the percentage change in quantity demanded for air travel generated by a change in income, they are looking at the
A) price elasticity of demand for air travel
B) income elasticity of demand for air travel
C) price elasticity of demand for airline tickets
D) cross elasticity of demand for airline tickets
E) cross elasticity of demand for airline travel

Question

Quizplus · Accepted Answer

The percentage change in quantity demanded for a good (in this case, air travel) resulting from a change in income is referred to as the income elasticity of demand. This measures how sensitive the demand for a good is to changes in consumers' income.

When Economists Look at the Percentage Change in Quantity Demanded