Answer to Question #203832 in Macroeconomics for Akash Vishnu Khude

Question

Define the price elasticity of demand and the income elasticity of demand.

Answer 1

The price elasticity of demand is an economic indication of the rise in the quantity of commodity desires or consumes in relation to its change in price.

The income elasticity of demand is an economic measure of how responsive a good or service's quantity demand is to changes in income.