Asked by zaimel moses on May 28, 2024
Verified
The income elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in income.
Income Elasticity
A measure of how the demand for a good or service changes in response to changes in consumers' income.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a specific price level.
- Comprehend the principle of income elasticity of demand.
Verified Answer
HJ
Hamza JavedMay 29, 2024
Final Answer :
True
Explanation :
Income elasticity of demand measures how much the quantity demanded of a good responds to a change in consumers' income, calculated as the percentage change in quantity demanded divided by the percentage change in income.
Learning Objectives
- Comprehend the principle of income elasticity of demand.