A consumer’s income falls by 10%, and demand for a good then rises from 100 to 105. Calculate the consumer’s income elasticity of demand for this good.
- A–2.0
- B–0.5
- C+0.5
- D+2.0
Economics 9708 · AS & A Level · Price elasticity of demand
A consumer’s income falls by 10%, and demand for a good then rises from 100 to 105. Calculate the consumer’s income elasticity of demand for this good.