The elasticity that measures the responsiveness of consumer demand to changes in income is the:
A) income elasticity.
B) own price elasticity.
C) cross-price elasticity.
D) neither the income elasticity, the own price elasticity, nor the cross-price elasticity.

Question

Quizplus · Accepted Answer

The income elasticity measures how much the quantity demanded of a good changes in response to a change in income. Therefore, it is directly related to changes in consumer income, making choice A the correct answer.

The Elasticity That Measures the Responsiveness of Consumer Demand to Changes