Asked by
Cristi Prado
on Nov 17, 2024
Verified
The income elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price.
Income Elasticity
A measure of how much the demand for a good changes in response to a change in consumers' income.
Quantity Demanded
The overall volume of a specific good or service that consumers intend and have the means to acquire at a given price.
- Understand the concept of income elasticity of demand.
Verified Answer
ML
Learning Objectives
- Understand the concept of income elasticity of demand.