ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income elasticity of demand is defined as the responsiveness of:
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Quantity demanded to a change in income
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Quantity demanded to a change in price
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Price to a change in income
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Income to a change in quantity demanded
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Explanation:
Detailed explanation-1: -Income elasticity of demand measures the responsiveness of the quantity demanded for a good or service to a change in the income of the people demanding the good. It is calculated as the ratio of the percentage change in quantity demanded to the percentage change in income.
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