The sensitivity of demand for a product relative to changes in income is called ________.
A) income elasticity
B) demand shaping
C) income distribution
D) market intensity

Question

Quizplus · Accepted Answer

The sensitivity of demand for a product relative to changes in income is called income elasticity. It measures the percentage change in quantity demanded for a good or service as a result of a 1% change in income.

The Sensitivity of Demand for a Product Relative to Changes