Source: GRAPHS BY JUSTIN TAPP
(00:00 - 00:09) Intro(00:10 - 00:32) Normal and Inferior Goods(00:33 - 00:46) Luxury Goods(00:47 - 01:25) Calculating Income Elasticity(01:26 - 02:53) Income Elasticity Example(02:54 - 03:14) Review
An economic measure of change in relation to income and demand for normal, inferior and luxury goods.
Goods for which demand decreases as income increases.
A good that offers better quality and features which is consumed when income rises.
Goods for which demand increases as income increases.