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Give economic term: Degree of responsiveness of quantity demanded to change in income only. - Economics

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Question

Give economic term:

Degree of responsiveness of quantity demanded to change in income only.

One Word/Term Answer
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Solution

Income elasticity of demand

Explanation:

This measures how the quantity demanded of a good or service changes in response to a change in consumers income. It helps in understanding whether a good is a necessity or a luxury, with different goods reacting differently to changes in income levels.

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Chapter 3.2: Elasticity of Demand - EXERCISE [Page 35]
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