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प्रश्न
Define income elasticity of demand.
उत्तर १
Income elasticity of demand is the degree to which the quantity requested of a commodity is responsive to variations in consumer income.
उत्तर २
The income elasticity of demand is the ratio of percentage change in the quantity demanded of a commodity to a percentage change in the income of the consumer. It can be expressed as under:
Ey = `("Percentage change in quantity demanded")/("Percentage change in income")`
संबंधित प्रश्न
Complete the following statement:
Price elasticity of demand on a linear demand curve at the Y-axis is equal to ________.
Give economic term:
Degree of responsiveness of quantity demanded to change in income only.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of another commodity is cross elasticity.
Reasoning (R): Changes in consumer income lead to a change in the quantity demanded.
Statements that are related to cross elasticity of demand:
- Change in quantity demanded of one commodity due to a change in the price of other commodity
- It is a type of elasticity of demand.
- It is applicable to complementary goods and substitutes.
- It is expressed as Ey = % ΔQ / %ΔY
Explain the types of elasticity of demand
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
With the help of a diagram, explain the Relatively inelastic demand curve.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R) : Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
How is the price elasticity of demand of a commodity is affected by the number of its substitutes.
