The income elasticity of demand measures:

CA Foundation · Business Economics · MTP · September 2024
The income elasticity of demand measures:
(A) A. The responsiveness of quantity demanded to change in price
(B) B. The responsiveness of quantity demanded to change in income
(C) C. The responsiveness of quantity supplied to change in price
(D) D. The responsiveness of quantity supplied to change in income

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. The responsiveness of quantity demanded to change in income

Topics: Theory of Demand and Supply

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