Respuesta :
The income elasticity of demand if an 8 percent increase in income leads to a 4 percent decrease in quantity demanded for organic produce is -2
What is income elasticity?
The quantity of a good that is demanded in response to a change in consumer income is referred to as the income elasticity of demand in economics. The ratio of the percentage change in quantity required to the percentage change in income is used to calculate it.
A measure of the economic responsiveness of the quantity of an item or service demanded to a change in income is called income elasticity of demand. The percentage change in quantity demanded divided by the percentage change in income is the formula for determining the income elasticity of demand.
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