What is income elasticity?
A)The change in the quantity supplied as a result of a change in price.
B)The responsiveness of the change in the quantity demanded to a change in the price of a product.
C)The change in the price of a product as a result of a change in supply.
D)The responsiveness of the quantity demanded to a given change in income.

Question

Quizplus · Accepted Answer

Income elasticity is the measure of the responsiveness of quantity demanded to a given change in income. It helps in understanding how much the demand for a product will change as the income of the consumers changes.

What Is Income Elasticity