Determinants of the income elasticity , Microeconomics

Determinants of the Income Elasticity of the Demand:

The determinants of income elasticity of demand are given below:

  • The Degree of necessity of the commodity.

 

  • The rate at which the desire for commodity is satisfied as consumption increases.

 

  • The level of income of the consumer.

Short Run and Long Run criteria:

Short run is the period in which not all factors can adjust fully and thus adjustment to shocks can only be partial.

Long run is the period over which all factors can be changed and full adjustment to shocks can happen.

 

 

Posted Date: 7/19/2012 4:07:37 AM | Location : United States







Related Discussions:- Determinants of the income elasticity , Assignment Help, Ask Question on Determinants of the income elasticity , Get Answer, Expert's Help, Determinants of the income elasticity Discussions

Write discussion on Determinants of the income elasticity
Your posts are moderated
Related Questions
how to control principal agent

Topic: Please choose a case study in water related area and analyse it from at least two angles (or more) by examining the technical side as well as the economical, social and poli

is it just assumed that a monopoly graph is showing economic profit instead of accounting profit

You've been contacted by a local semi-professional team in Colfax, known locally as the Colfax Thunder. They play their home games at the HS baseball park for only $100 per month.

What are the important functions to maximize total surplus? The market equilibrium maximizes total surplus since the market performs four significant functions are as follows:

What are the main causes of unemployment? Two main paths are available; demand-deficient unemployment and real wage unemployment. After explaining unemployment (percentage o

Neutrality: Bureaucracy is apolitical and neutral. Prof. Frocderich mentions the following features of bureaucracy: (i) differentiation of functions, (ii) qualifications for o

Q. What do you meant by Deficit? Deficit: When a business, government or household spends more in a given period of time than they generate in income, they suffer a deficit. A

if the Japanese yen appreciates against the U.S. dollar, do the Japanese businesses gain by a decrease in the dollar price of exports to the United States

what will cause a firms demand curve to shift: a a change in sellers profit associated with the good or service b change in technology for good cchange in non price variable in dem