Breifly explain the topic income elasticity of demand with tables or examples and daigram
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Income elasticity of demand is the degree of responsiveness of quantity demanded of a commodity due to change in consumer’s income, other things remaining constant. In other words, it measures by how much the quantity demanded changes with respect ot the change in income.
The income elasticity of demand is defined as the percentage change in quantity demanded due to certain percent change in consumer’s income.
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