The elasticity that measures the responsiveness of consumer demand to changes in income is the:
A)income elasticity.
B)own-price elasticity.
C)cross-price elasticity.
D)neither the income elasticity, own-price elasticity nor the cross-price elasticity.

Question

Quizplus · Accepted Answer

The question explicitly mentions consumer demand's responsiveness to changes in income, which means we are looking for the income elasticity. The other options involve price changes and therefore don't apply to this question.

The Elasticity That Measures the Responsiveness of Consumer Demand to Changes