Income Elasticity Of Demand Flashcards
1
Q
How do we calculate income elasticity of demand
A
YED= percentage change in quantity demand/percentage change in income
2
Q
What is income elasticity of demand
A
Measured the sensitivity of demand to changes in income
3
Q
What is income
A
A set wage a person earns after working
4
Q
What is elastic products
A
A product that’s pricing can change with demand
5
Q
What is an Inelastic product
A
A product that’s pricing doesn’t change despite demand
