Question

income elastic demand​

Answer 1

Answer:

In economics, the income elasticity of demand is the responsiveness of the quantity demanded for a good to a change in consumer income. It is measured as the ratio of the percentage change in quantity demanded to the percentage change in income. If a 10% increase in Mr. Ruskin Smith's income causes him to buy 20% more bacon, Smith's income elasticity of demand for bacon is 20%/10% = 2.

Answer 2

$\huge\fcolorbox{cyan}{yellow}{Answer}$

In economics, the income elasticity of demand is the responsiveness of the quantity demanded for a good to a change in consumer income. It is measured as the ratio of the percentage change in quantity demanded to the percentage change in income.

$\huge\fcolorbox{cyan}{yellow}{formula}$

$\epsilon_d$ = income elasticity of demand

$\Delta D / D$ = change in quantity demanded

$\Delta I / I$ = change in income