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NikAS [45]
3 years ago
5

If the demand for clothing increases by 8% when income increases by 10%, the income elasticity of clothing, using one decimal pl

ace and the negative sign if necessary, is _____.
Business
1 answer:
Lynna [10]3 years ago
5 0

Answer:

0.8

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in the income of the consumer.

Income elasticity of demand = percentage change in quantity demanded / percentage change in income

8% / 10% = 0.8

I hope my answer helps you

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Principal of the note
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