Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Types of Income Elasticity of demand
Depending upon the product, demand might increase or decrease in response to a rise in income. There are thus five types of income Elasticity of demand viz:
i) Negative Income Elasticity
This is where the demand decreases as income rises and rises when income falls. This is the case of inferior goods.
ii) Zero Income Elastic
In this case, the demand does not change as income rises or falls. In this case it is said to be zero income, elasticity. This is the case of a necessity.
iii) Income Inelastic
This is where demand rises by a smaller proportion than income or falls by a smaller proportion than income.
iv) Unit Income Elasticity
This is where demand rises or falls by exactly the same proportion as income.
v) Income Elastic
Demand rises or falls by a greater proportion than income. Since income elasticity of demand can be either positive or negative, it is therefore very important to include the sign (+ or -) when stating the value of the co-efficient.
"A budget deficit that is only temporary cannot be the source of inflation." Is this statement true, false, or uncertain? Describe your answer.
Q. What is the economic role of government? What are the roles? Meaning: economic role is the role played by the government in uplifting the economy. The important roles: 1.
Monetary policy The problems concerning the ability of monetary policy to influence the economy, as for instance the doubts about the ability of lower interest rates to st
Define concept of Managerial decision-making Managerial decision-making draws on economic concepts as well as techniques and tools of analysis provided by decision sciences. T
You're standing at three light switches at the bottom of stairs to the attic. Each one corresponds to one of three lights in the attic, but you cannot see the lights from where you
Methods which rely on quantitative data: Rule-based forecasting Data mining Quantitative analogies Discrete event simulation Neural networks Extrapo
what is a firm
Assignment
Perfectly Elastic Supply Supply is said to be perfectly or infinitely elastic if the price is fixed at all levels of demand. The demand curve has been shown in the above diag
What are the essential conditions for perfect completion? Two essential conditions for perfect competition are as given below: a. Various producers, none of whom have a hug
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd