Question

Which of the following is true for income elasticity of

demand? (1) It measures the responsiveness of quantity demanded of a good with respect to consumers' income (2) It is calculated by dividing percentage change in quantity demanded by percentage change in consumer income

A Neither

B Only 2

C Both 1 and 2

D Only 1

Practice Next

More Theory of Demand and Supply Questions

If (6000) ⁵ = 7.776 Find the value of (256 x 4096)/(400 x 125 x 64) = ?
(0.25)^-1.5 = ?
If √35 = 5.9 find the value of
Which among the following is the greatest?

2⁹⁶, 3⁷², 4⁶⁰, 5⁴⁸
(0.36)^-1.5= ?
What will come in place of a?

169 ^1.7 x 13 ^2.5 x 169 ^1.5 = 13 ^a
(0.16)^-1.5 = ?
(0.64)^3/2 = ?
If 2^x = 3^y = 6^-z, then (1/x) + (1/y) + (1/z) =?

Question

Which of the following is true for income elasticity of

Solution

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