Income Elasticity Of Demand:

Income elasticity of demand:

To demand may change without any change in price. For example; if the demand changes due to change in the income of the consumer. For example, if the income of the consumer is Rs 500/ and he purchases 10 units of commodity A at Rs .10 per units .if his income increase to Rs .1000/ he will purchase more than 10 units at the same price. therefore when quantity of demanded change due to change in income elasticity of dem



Formula of income elasticity of demand :

Income elasticity of demand %change in Quantity demand/ % change in income.

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Mention the degrees of elasticity of demand

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