Question

Explain in detail with figure the various degrees in income elections of demand

Answer 1

Answer:

According to Stonier and Hague, “Income elasticity of demand shows the way in which a consumer’s purchase of any good changes as a result of change in his income”.

Explanation:

Answer 2

Answer:

According to Stonier and Hague, “Income elasticity of demand shows the way in which a consumer’s purchase of any good changes as a result of change in his income”.

It shows the responsiveness of a consumer’s purchase of a particular commodity to a change in his income. Income elasticity of demand means the ratio of percentage change in the quantity demanded to the percentage change in income.