Calculating income elasticity of demand 0.0 / 5 ? Businesstheme 1 A2/A-levelEdexcel Created by: 2022emilyCreated on: 07-12-22 09:15 What is income elasticity of demand? Income elasticity of demand is the responsiveness of a product demand to a change in incomes 1 of 6 Normal goods would do what to income and demand? An increase in incomes leads to an increase in the quantity demanded 2 of 6 Is normal goods positive or negative Positive 3 of 6 Inferior goods would do what to income and demand? An increase in incomes will lead to a fall in demand or a decrease in income will lead to an increase in demand 4 of 6 Is inferior goods positive or negative? Negative 5 of 6 What is the formula? income of elasticity of demand = % change in quantity demanded / % change in income 6 of 6
Comments
No comments have yet been made