3 Tutorials that teach Income Elasticity
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Income Elasticity

Income Elasticity

Author: Justin Tapp
This lesson will explain Income Elasticity
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Notes on "Income Elasticity"

Terms to Know

Income Elasticity

An economic measure of change in relation to income and demand for normal, inferior and luxury goods.

(QA-QB) / (QA+QB)
(IA-IB) / (IA+IB)

Luxury Goods

A good that offers better quality and features which is consumed when income rises.

Normal Goods

Goods for which demand increases as income increases.

Inferior Goods

Goods for which demand decreases as income increases.