Income elasticity refers to
A) percentage change in quantity demanded divided by the percentage change in price.
B) movement down along a demand curve.
C) movement up along a demand curve.
D) horizontal shift of a demand curve.
E) vertical shift of a demand curve.

Question

Quizplus · Accepted Answer

Income elasticity refers to the responsiveness of the quantity demanded of a good to a change in the consumer's income, which is represented by a horizontal shift of the demand curve as the consumer's purchasing power changes.

Income Elasticity Refers to