Change: government because the demand for their products is directly affected by the price of other products. Income Elasticity of Demand: Remember: income is a determinant of demand! This measures the degree to which consumers respond to a change in their incomes by buying more or less of a particular good.   View changes from previous version. (Word count: 275)

Change: (Ex. retread tires, cabbage, used clothing).A negative coefficient means that the income and quantity demanded move in opposite directions. i.e. as the income increases, the demand for the good decreases meaning it is inferior. Insights Coefficients of income elasticity of demand provide   View changes from previous version. (Word count: 234)

Change:  or less of a particular good. Inferior Goods A negative income-elasticity coefficient represents an inferior good (retread tires, cabbage, used clothing). Insights Coefficients of income elasticity of demand provide insights into the economy and helps explains why events are happening in the economy.   View changes from previous version. (Word count: 203)

Change:  Demand: This measures how sensitive consumer purchase of one product (X) are to change in the price of some other product (Y) Income Elasticity of Demand: This measures the degree to which consumers respond to a change in their incomes by buying more or less of a particular good.   View changes from previous version. (Word count: 52)

Change: Created by welkerjason Aug 29 2007, 2:20 AM EDT for: no reason given