Income elasticity of demand describes:
A. which way the demand shifts in response to a change in price.
B. how much the quantity demanded changes in response to a change in consumers' incomes.
C. how quickly the market will change in response to a change in consumers' incomes.
D. how much the quantity demanded changes in response to a change in price.
Answer: B
You might also like to view...
A movement from one point on a production possibilities frontier to another represents
A) unemployment. B) a tradeoff. C) an advance in technology. D) full employment of labor but not capital. E) a free lunch.
Suppose demand decreases and supply decreases. Which of the following will happen?
a. equilibrium price will increase b. equilibrium price will decrease c. equilibrium quantity will increase d. equilibrium quantity will decrease e. neither the equilibrium price nor the quantity will change