The percent change in quantity demanded of a good divided by the percent change in income,all other things unchanged,is the _____ elasticity of demand.

A) price
B) quantity
C) income
D) cross-price

Learning Objectives

• Familiarize yourself with the concept of income elasticity of demand and how it is applied to classify goods as normal or inferior.
• Apply principles of elasticity to foresee changes in demand or consumption linked to price variations of akin goods or changes in financial status.