Income elasticity of demand

Income elasticity of demand may be defined as the degree of responsiveness of quantity demanded to change in incomer only. Other factors including price remain unchanged. It is written as­ -
Ey = D(Y)

quantity demanded, Y means income, D delta stands for a change). Income elasticity of demand is positive, when demand increases with increasing income. Income elasticity of demand is negative when, quantity demanded decreases with increase in income. In case of normal goods income elasticity of demand is of inferior goods, income, elasticity of demand is negative Income elastioity of demand can be zero, one, greater than one, and less than one.

No comments:

Post a Comment

PDF FILE TO YOUR EMAIL IMMEDIATELY PURCHASE NOTES & PAPER SOLUTION. @ Rs. 50/- each (GST extra)

HINDI ENTIRE PAPER SOLUTION

MARATHI PAPER SOLUTION

SSC MATHS I PAPER SOLUTION

SSC MATHS II PAPER SOLUTION

SSC SCIENCE I PAPER SOLUTION

SSC SCIENCE II PAPER SOLUTION

SSC ENGLISH PAPER SOLUTION

SSC & HSC ENGLISH WRITING SKILL

HSC ACCOUNTS NOTES

HSC OCM NOTES

HSC ECONOMICS NOTES

HSC SECRETARIAL PRACTICE NOTES

Balbharati Solutions for Class 12

Biology 12th Standard HSC Maharashtra State Board

Book - Keeping and Accountancy 12th Stantard HSC Maharashtra State Board

Chemistry 12th Standard HSC Maharashtra State Board

Economics HSC 12th Standard Maharashtra State Board

English Yuvakbharati 12th Standard HSC Maharashtra State Board

Geography 12th Standard HSC Maharashtra State Board

Hindi - Yuvakbharati 12th Standard Maharashtra State Board

History 12th Standard HSC Maharashtra State Board

Marathi - Yuvakbharati 12th Standard Maharashtra State Board

Mathematics and Statistics 1 (Arts and Science) 12th Standard Hsc Maharashtra State Board

Mathematics and Statistics 1 (Commerce) 12th Standard HSC Maharashtra State Board

Mathematics and Statistics 2 (Arts and Science) 12th Standard Hsc Maharashtra State Board

Mathematics and Statistics 2 (Commerce) 12th Standard HSC Maharashtra State Board

Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Physics 12th Standard Maharashtra State Board

Political Science 12th Standard HSC Maharashtra State Board

Secretarial Practice 12th Standard HSC Maharashtra State Board

Sociology - Understanding Indian Society 12th Standard HSC Maharashtra State Board