Solved UPSC CDS/OTA Question
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Q · Market and Types of Goodsmoderate · 45s
Which elasticity measures how quantity demanded responds to changes in consumer income?
TopicMarket and Types of Goods
Question Typemultiple choice
Difficultymoderate
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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Income elasticity of demand measures responsiveness of demand to changes in income.Meaning: Percentage change in demand over percentage change in income.Correct: B is correct.Incorrect: A relates to price; C relates to price of related goods; D relates to supply.
Final Answer: Option B - Income elasticity of demand