Asked by
zhang junjie
on Nov 25, 2024
Verified
Income elasticity measures the effect of a change in income on the purchases of some good or service.
Income Elasticity
A measure of how the demand for a good or service changes in relation to a change in income.
Good
A tangible product that satisfies human wants or needs.
Service
An (intangible) act or use for which a consumer, firm, or government is willing to pay.
- Acquire knowledge on the theory and relevance of income elasticity of demand.
Verified Answer
CW
Learning Objectives
- Acquire knowledge on the theory and relevance of income elasticity of demand.