If income rises and the demand for toothbrushes stays the same, income elasticity of toothbrushes is said to be unit elastic.

Name: If income rises and the demand for toothbrushes stays the same, income elasticity of toothbrushes is said to be unit elastic.
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Question

Quizplus · Accepted Answer

Income elasticity of demand measures how the quantity demanded of a good responds to a change in income. If the demand for toothbrushes stays the same despite an increase in income, the income elasticity is zero, not unit elastic.

If Income Rises and the Demand for Toothbrushes Stays the Same