The difference between price elasticity of demand and income elasticity of demand is that
A) income elasticity of demand examines how an individual's income changes when prices change and the price elasticity of demand examines how quantity demand changes when price changes.
B) income elasticity refers to the movement along the demand curve while price elasticity refers to a horizontal shift of the demand curve.
C) income elasticity measures the responsiveness of income to changes in supply while price elasticity of demand measures the responsiveness of demand to a change in price.
D) income elasticity refers to a horizontal shift of the demand curve while price elasticity of demand refers to a movement along the demand curve.
Correct Answer:
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Q334: If an individual's income rises 4 percent
Q335: The income elasticity of demand
A) is positive
Q336: When Frank's income was $100 per week,
Q337: When Tim earned $65,000 he purchased 10
Q338: The income elasticity of demand is
A) the
Q340: Income elasticity of demand reflects
A) the change
Q341: Charlie's income went from $1000 per week
Q342: Use the above table. Based on the
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