Income elasticity of demand is defined as the responsiveness of

1.	Income elasticity of demand is defined as the responsiveness of
Answer» Quantity demanded to a change in income Income Elasticity of DEMAND (YED) is DEFINED as the RESPONSIVENESS of demand when a consumer's income changes. It is defined as the RATIO of the change in quantity demand over the change in income. The HIGHER the income elasticity, the more sensitive demand for a good is to changes in income.

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Quantity demanded to a change in income

Income Elasticity of DEMAND (YED) is DEFINED as the RESPONSIVENESS of demand when a consumer's income changes. It is defined as the RATIO of the change in quantity demand over the change in income. The HIGHER the income elasticity, the more sensitive demand for a good is to changes in income.

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Income elasticity of demand is defined as the responsiveness of

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