Income Elasticity of Demand Measure
An Income Elasticity of Demand Measure is a elasticity measure between income and item demand.
- Context:
- It report an Income Elasticity of Demand Value (that can range from being a income inelastic to being a income elastic).
- …
- Counter-Example(s):
- See: Demand Curve.
References
2013
- http://www.economicshelp.org/blog/7019/economics/examples-of-elasticity/
- QUOTE: Income elastic – means a change in income causes a bigger % change in demand, e.g. if income goes up 10%, and you spend 20% more on luxury good.
… If incomes increase, people may buy more bananas, but many already eat as much as they want. But, those on lower incomes may feel they can now afford to buy fresh bananas. … An inferior good has a negative income elasticity of demand. When incomes increase, demand falls.
- QUOTE: Income elastic – means a change in income causes a bigger % change in demand, e.g. if income goes up 10%, and you spend 20% more on luxury good.