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Micro-Economics

income elasticity greater than unity

Income elasticity of Demand

Definition: The income elasticity of demand measures how the quantity demanded changes as consumer income changes. Economists compute the income elasticity of demand as the …

Price elasticity of demand

Elasticity of Demand

Introduction: The concept of elasticity of demand was first introduced by the classical economists A.A. Cournot and J.S. Mill. Later on, neo-classical economist Alfred Marshall …

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