Diffrence between price and income elasticity of demand, Microeconomics

Diffrence between price and Income elasticity of demand:

Own price elasticity of demand is the degree of responsiveness of the quantity demanded of a commodity to a change in tis own price and measured as percentage change in quantity demanded divided by percentage change in the price of the commodity. That is:

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On the other hand, income elasticity of demand is the responsiveness of demand for a commodity to a change in consumer income and measured as percentage change in quantity demanded divided by
percentage change in income.

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Posted Date: 1/2/2013 7:11:08 AM | Location : United States







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What is the mathematical definition of price elasticity of demand The price elasticity of demand is the percentage alters in quantity demanded divided by the percentage change