Distingguish between price elasticity of demand and income elasticity of demand
8 Views|Posted 2011-09-24 20:12:43
Asked by Amit Singh
1 Answer
Answered by
2011-09-24 22:26:02
Dear amit.
In economics, income elasticity of demand measures the responsiveness of the demand for a goods to a change in the income of the people demanding the goods,
It is calculated as the ratio of the percentage change in demand to the percentage change in income.
For example, if, in response
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