Difference between revisions of "Income elasticity of demand"
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m (Reverted edits by Sock of Icewedge (Talk); changed back to last version by SharonS) |
m (Income Elasticity of Demand moved to Income elasticity of demand over redirect: Conform to MoS) |
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Revision as of 09:31, October 13, 2008
Income Elasticity of Demand is the percentage change in quantity of a good demanded divided by the percentage change in average income. It tells how the demand for a good reacts to changes in the average income. Normal Goods have a positive Income Elasticity, while Inferior Goods have a negative income elasticity.