Income elasticity of demand
From The Art and Popular Culture Encyclopedia
|
Related e |
|
Featured: |
In economics, the income elasticity of demand is the responsivenesses of the quantity demanded for a good to a change in consumer income. It is measured as the ratio of the percentage change in quantity demanded to the percentage change in income. If a 10% increase in Mr. Ruskin Smith's income causes him to buy 20% more bacon, Smith's income elasticity of demand for bacon is 20%/10% = 2.
[edit]
See also
- cross elasticity of demand (XED)
- price elasticity of demand (PED)
- price elasticity of supply (PES)
Unless indicated otherwise, the text in this article is either based on Wikipedia article "Income elasticity of demand" or another language Wikipedia page thereof used under the terms of the GNU Free Documentation License; or on research by Jahsonic and friends. See Art and Popular Culture's copyright notice.
