--%>

Ratio to determine income elasticity of demand

The income elasticity of demand [at a specified price] is computed by the ratio of the relative: (a) change in quantity demanded over a given proportional change in income. (b) reciprocal of the price elasticity of supply. (c) slope of the demand curve. (d) angles at which demand intersects supply.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Innovating and enduring uncertainty of

    Profits are: (i) rewards for innovating and enduring uncertainty. (ii) economic, not normal, under pure competition. (iii) reduced through monopolistic business practices or structure. (iv) payments for providing capital. (v) payments to resource owne

  • Q : Supply curve Select the right answer of

    Select the right answer of the question. A supply curve that is a vertical straight line indicates that: A) production costs for this product cannot be calculated. B) the relationship between price and quantity supplied is inverse. C) a change in price will have no ef

  • Q : Natural monopolies closely regulated by

    Inside the United States, public utilities like natural gas lines or electric companies are frequently: (w) quite competitive while they vie for the consumer's dollars. (x) natural monopolies which are closely regulated by government. (y) seldom closely regulated thro

  • Q : Introduction of marginal utility The

    The marginal utility (MU) of a good: (1) Was first introduced by Adam Smith. (2) Is simply measured in dollars. (3) Is determined by society as an entire. (4) Reflects subjective preferences. Can someone help me in getting through

  • Q : Barriers to entry of dominated industry

    An industry dominated by small huge firms shielded through barriers to entry is: (1) a monopoly. (2) a vertically integrated industry. (3) an oligopolistic industry. (4) an aggregated industry. (5) a cartel. I need

  • Q : Regulatory barrier to entry Billy

    Billy recently invented and in that case patented a motorized flying skateboard which transports people to and from their destinations in less than half the time this would take to ride or drive a bus. Billy is protected from competition from a: (1) regulatory barrier

  • Q : Demand and supply influences

    Changes in both demand and supply of a commodity might or might not influence its equilibrium price. Describe.

  • Q : Effect of minimum wage laws in

    The Minimum wage laws might efficiently raise employment: (i) When the set wage value surpasses labor market equilibrium. (ii) In industries of profoundly exercised monopsony power. (iii) In no condition; higher minimum wage floods the labor supply and lower minimum w

  • Q : Marginal Revenue and Costs in purely

    Hey friends I need your suggestion for this query about the profit and losses as illustrated graph when this firm produces q2 output, in that case its: (w) MR > MC. (x) MR < MC. (y) MR = MC. (z) P > MC.Please give me right answer for the same.

  • Q : Income Distribution and Satisfaction

    The proposition which taxing the rich to provide to the poor improves social welfare can’t be proved due to the impossibility of: (1) developing a political consensus about efficient redistribution programs. (2) the marginal utility of income di