Which term describes the responsiveness of the quantity demanded to changes in consumer income?

Show Answers

Demand sensitivity to price changesElasticity measuring demand response to related goods' pricesElasticity related to consumer budget adjustmentsElasticity reflecting demand variation with income shiftsNone of the above

Explanation

Option A refers to price elasticity of demand, which measures how quantity demanded changes with price. Option B is cross-price elasticity, indicating demand change due to price changes of other goods. Option C is not a standard economic term. Option D, income elasticity of demand, correctly measures how demand varies as consumer income changes.