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

Question

Quizplus · Accepted Answer

Income elasticity of demand measures how the quantity demanded of a product changes as consumer income changes. It shows the sensitivity of demand for a particular product to changes in consumer income.

What Does Income Elasticity of Demand Measure