Income Elasticity of Demand Describes

question 64

Multiple Choice

Income elasticity of demand describes:

• A) how much the quantity demanded changes in response to a change in consumers' incomes.
• B) which way the demand shifts in response to a change in price.
• C) how much the quantity demanded changes in response to a change in price.
• D) how quickly the market will change in response to a change in consumers' incomes.

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Definitions:

Assets

Resources owned or controlled by a business, expected to produce future economic benefits.

Owner's Equity Statement

A financial statement showing the changes in the equity of a business entity over a period of time.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.