Income elasticity of demand measures how
A)the quantity demanded changes as consumer income changes.
B)consumer purchasing power is affected by a change in the price of a good.
C)the price of a good is affected when there is a change in consumer income.
D)many units of a good a consumer can buy given a certain income level.

Question

Quizplus · Accepted Answer

Income elasticity of demand specifically measures the responsiveness of the quantity demanded of a good to a change in consumer income, indicating how changes in income levels affect the demand for a product.

Income Elasticity of Demand Measures How