PRC-3 · Chapter 11 · Question 48 of 57
What specific term describes the measurement of how sensitive the demand for a good is to a change in the consumers' money income?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Income elasticity of demand
Explanation
Income elasticity of demand (YED) precisely measures the responsiveness of the quantity demanded of a good to a change in the real income of consumers.
More Elasticity of Demand and Supply MCQs
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