Answered

If the demand for clothing increases by 8% when income increases by 10%, the income elasticity of clothing, using one decimal place and the negative sign if necessary, is _____.

Answer :

Answer:

0.8

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in the income of the consumer.

Income elasticity of demand = percentage change in quantity demanded / percentage change in income

8% / 10% = 0.8

I hope my answer helps you

Other Questions