Income elasticity of demand is the ratio ofto a percentage change in the consumer's income, pricesremaining constant.O a. percentage change in the price of the commodityO b. percentage change in the price of substitutesO c. percentage change in the demand of the commodityO d. percentage change in the amount spent on the commodity

Alfred Marshall is the person who introduce the concept of elasticity in economics.

Answered: Income elasticity of demand is the…

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Income elasticity of demand is the ratio of to a percentage change in the consumer's income, prices remaining constant.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 10PA

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Question

Income elasticity of demand is the ratio of
to a percentage change in the consumer's income, prices
remaining constant.
O a. percentage change in the price of the commodity
O b. percentage change in the price of substitutes
O c. percentage change in the demand of the commodity
O d. percentage change in the amount spent on the commodity

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