Asked by Justin Brady on Jun 30, 2024
Verified
Income elasticity measures the effect of a change in income on the purchases of some good or service.
Income Elasticity
A measure of how much the quantity demanded of a good changes in response to a change in consumers' income.
- Understand the effect of income changes on the demand for goods and services.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
True
Explanation :
Income elasticity is a measure of the responsiveness of quantity demanded to changes in income.
Learning Objectives
- Understand the effect of income changes on the demand for goods and services.