What is income elasticity if an 8 per cent increase in income leads to a 4 per cent increase in quantity demanded for organic produce?
A)-0.66
B)0)5
C)1)5
D)2

Name: What is income elasticity if an 8 per cent increase in income leads to a 4 per cent increase in quantity demanded for organic produce? A)-0.66 B)0)5 C)1)5 D)2
Brand: Quizplus
Rating: 5.0 (39 reviews)

Question

Quizplus · Accepted Answer

Income elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in income. Here, it is 4% / 8% = 0.5.

What Is Income Elasticity If an 8 Per Cent Increase