Economy, asked by rishirajsavekar, 1 month ago

distinguish between income elasticity and cross elasticity?

Answers

Answered by DaniyaDinto

Income elasticity of demand – which measures how demand responds to a change in income – is always negative for an inferior good and positive for a normal good. ... Cross elasticity of demand measures the responsiveness of demand for one commodity to changes in the price of another good.

Answered by uchihamadara78

Answer:

Income elasticity of demand which measures how demand responds to a change in income is always negative for an inferior good and positive for a normal good. Cross elasticity of demand measures the responsiveness of demand for one commodity to changes in the price of another good.

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