Income elasticity of demand is the ratio ofto a percentage change in the consumer's income, pricesremaining constant.O a. percentage change in the price of the commodityO b. percentage change in the price of substitutesO c. percentage change in the demand of the commodityO d. percentage change in the amount spent on the commodity

Alfred Marshall is the person who introduce the concept of elasticity in economics.

Answered: Income elasticity of demand is the…

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Economics

Income elasticity of demand is the ratio of to a percentage change in the consumer's income, prices remaining constant.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 3QR

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