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Question
Give economic term:
Degree of responsiveness of quantity demanded to change in income only.
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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Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
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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.
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.
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| Price (Rs.) | Quantity (Kg) |
| 10 | 20 |
| 20 | 15 |
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