Define or explain the following concept:Income Elasticity of Demand

1.	Define or explain the following concept:Income Elasticity of Demand
Answer» Income elasticity of demand measures the responsiveness of quantity demanded with respect to a change in the income of the consumer, while other factors including price of the commodity remain unchanged. Em = Proportionate change in quality demanded of good X/Proportionate change in income of the consumer

Answer»

Income elasticity of demand measures the responsiveness of quantity demanded with respect to a change in the income of the consumer, while other factors including price of the commodity remain unchanged.

Em = Proportionate change in quality demanded of good X/Proportionate change in income of the consumer

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Define or explain the following concept:Income Elasticity of Demand

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