income elasticity of demand Flashcards
1
Q
income elasticity of demand calculatiomn
A
percenatge change of quaniity demanded divided by percneatge change in income
2
Q
what does income elasticy of demand show
A
that the demand for a product chnages as incomes change
3
Q
normal products and inferiro products
A
normal products=psotive income elasticity of demand
inferiror products=negative income elasticity of demand
4
Q
A
