GK
BUSINESS ECONOMICS
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Question
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Income elasticity is computed by
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Explanation:
Detailed explanation-1: -Income elasticity measures how demand for a product responds to changes in customer income. The higher the income elasticity of demand for a product, the more closely its demand is tied to income changes. Businesses use this concept to evaluate or predict how economic fluctuations could affect their sales.
Detailed explanation-2: -How to Calculate Price Elasticity. To calculate price elasticity, divide the change in demand (or supply) for a product, service, resource, or commodity by its change in price. That figure will tell you which bucket your product falls into.
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