The income elasticity of demand is a measure of
A) how demand for a product changes when the price of a substitute or complement product changes.
B) how responsive consumers are to changes in the price of a product.
C) how responsive suppliers are to changes in the price of a product.
D) the extent to which the demand for a good changes when income changes.
E) the extent to which the supply of a good changes when the demand changes as a result of a change in income.
D
You might also like to view...
An experiment refers to:
A) a simplified representation of some real life phenomenon. B) the process of collecting, measuring, and organizing data. C) validating the claims of a model using statistics and facts. D) a controlled method of investigating causal relationships among variables.
One of the first organizations to investigate the business cycle was
A) the Federal Reserve System. B) the National Bureau of Economic Research. C) the Council of Economic Advisors. D) the Brookings Institution.