Individual and market demand - Income elasticity of demand
4 important questions on Individual and market demand - Income elasticity of demand
The income elasticity of demand is:
Given by the formula: n = (dQ/Q)/(dY/Y) or Y/Q x (dQ/dY)
Goods are called necessities, when their income elasticity:
Inferior goods have a income necessity of
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The most important application of the income elasticity concept is:
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