What does the income elasticity of demand measure? How is it calculated?
What will be an ideal response?
The income elasticity of demand measures the responsiveness of demand to changes in income. It is calculated by dividing the percentage change in quantity demanded by the percentage change in income.
Economics
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Which of the following influences household saving?
I. The real interest rate II. Disposable income III. Expected future income A) I only B) I and II C) I and III D) I, II, and III
Economics
Entrepreneurship functions better when
A) the government performs the entrepreneurial function. B) there is a well-defined property rights system. C) saving is relatively low. D) most of the population has low levels of education.
Economics