contestada

. The income elasticity of demand measures, for a given price, the _________ in quantity demanded divided by the _________ income from which it resulted. b. If a decrease in the price of one good causes a decrease in demand for another good, the two goods are _________. c. If the value of the cross-price elasticity of demand between two goods is app

Respuesta :

Answer:

The income elasticity of demand measures for a given price, the PERCENTAGE CHANGE in quantity demanded divided by the PERCENTAGE CHANGE IN income

If a decrease in the price of one good causes a decrease in demand for another good, the two goods are SUBSTITUTES

Explanation:

In general terms, income elasticity of demand measures the degree of responsiveness of the quantity demanded for a good or service to a change in income.

                                Εd=% change in quantity demanded

                                                   % change in income

Substitute goods are goods that have a direct relationship to each other, that is, an increase in price of a particular goods/service would lead to an increase in demand for the other (its substitute)